Bitcoin (BTC) broke above $22,000 on Wednesday as risk appetite resumed after the US Federal Reserve moved to raise interest rates by 75 basis points.
BTC was trading around $22,575 at 15:20 a.m. ET on Wednesday, up about 10% over the past 24 hours.
Of these gains, about 5% came from the Fed’s rate hike. Ethereum (ETH) also rose sharply amid positive market reaction, breaking the $1,580 high with gains of over 15% in 24-hours.
Shares also rose after the rate hike and Fed Chairman Jerome Powell reaffirmed the central bank’s willingness to fight inflation. The S&P 500 was up 2.43%, the Dow Jones Industrial Average added more than 450 points while the Nasdaq was up 3.9%.
Among crypto stocks, Coinbase (COIN), which fell more than 21% to a low of $52.93 on Tuesday, was up more than 11% at the time of writing. Coinbase stock was trading near $54.84.
Fed hints at further rate hikes
This is the second time the Fed has raised interest rates by 0.75% and remains rate neutral at the level of monetary policymakers and economists.
However, Powell noted in a speech after the Federal Open Market Committee (FOMC) meeting that inflation remained above 2%, indicating further upside.
“Today, the FOMC raised its policy interest rate by three-quarters of a percent and anticipates an ongoing hike in the target range for the federal funds rate would be appropriate,” Powell said. Told,
Powell noted that it is possible that policymakers will want to slow rates in the near future.