For the fourth consecutive time now, US Federal Reserve officials raised the benchmark interest rate by 75 basis points, leading to renewed volatility. Bitcoin (BTC) price moved sharply higher after plummeting to an intraday low of $20,210 at 18:00 UTC. Cardano (ADA), XRP, Shiba Inu (SHIB), and other altcoins are in lockstep with Bitcoin.
The S&P 500, along with other benchmark stock market indices, was also hit with high volatility owing to the announcement. The recent unanimous decision by the Federal Open Market Committee took the federal funds rate to the 3.75% to 4% range. Note that back in March, it ranged from zero to 0.25%.
According to investors, the Fed will likely hike the benchmark rate by 50 basis points in December. However, the strong employment numbers hint that the central bank might move ahead with its fifth consecutive 75-basis point hike in a row.
Also, note that a sentence in the latest FOMC statement hints at smaller increments, explaining the reason for crypto and stocks rallied to intraday highs right after the announcement.
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