{"id":62977,"date":"2022-06-16T10:05:07","date_gmt":"2022-06-16T07:05:07","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=62977"},"modified":"2025-09-05T21:15:38","modified_gmt":"2025-09-05T18:15:38","slug":"fed-raises-key-rate-bitcoin-and-ethereum-rally","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/fed-raises-key-rate-bitcoin-and-ethereum-rally\/","title":{"rendered":"Fed raises key rate; Bitcoin and Ethereum rally"},"content":{"rendered":"<p>The Federal Reserve System (Fed) at its June 14-15 meeting <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/monetary20220615a.htm\">raised<\/a> the target range for the federal funds rate by 75 basis points\u2014to 1.5-1.75%. This sharp uptick is the regulator&#8217;s first since 1994.<\/p>\n<p>At the press conference following the meeting <span data-descr=\"Federal Open Market Committee (FOMC)\" class=\"old_tooltip\">FOMC<\/span> Chair Jerome Powell said that in July the rate could be raised by another 0.5%-0.75%.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Watch Chair Powell\u2019s statement from the <a href=\"https:\/\/twitter.com\/hashtag\/FOMC?src=hash&#038;ref_src=twsrc%5Etfw\">#FOMC<\/a> press conference: <br \/>Intro clip: <a href=\"https:\/\/t.co\/Y3l7YqcWtw\">https:\/\/t.co\/Y3l7YqcWtw<\/a><br \/>Full video: <a href=\"https:\/\/t.co\/JjXfKZpKef\">https:\/\/t.co\/JjXfKZpKef<\/a><br \/>Press Conference materials: <a href=\"https:\/\/t.co\/nAdBVSVVT0\">https:\/\/t.co\/nAdBVSVVT0<\/a><\/p>\n<p>\u2014 Federal Reserve (@federalreserve) <a href=\"https:\/\/twitter.com\/federalreserve\/status\/1537170535003611141?ref_src=twsrc%5Etfw\">June 15, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;In the coming months we will look for evidence that inflation is cooling. The pace of rate increases will still depend on incoming data, but a rise of 50 or 76 basis points seems more likely at the next meeting,&#8221; Powell said.<\/p>\n<\/blockquote>\n<p>The regulator also <a href=\"http:\/\/onetarypolicy\/files\/fomcprojtabl20220615.pdf\">updated<\/a> its economic projections to reflect a weaker outlook. It now expects US GDP to grow 1.7% in calendar year 2022 (previously 2.8%).<\/p>\n<p>Overall, the market had priced in a rate hike \u2014 futures <a href=\"https:\/\/www.cmegroup.com\/trading\/interest-rates\/countdown-to-fomc.html\">priced in<\/a> a 96% probability of the move. In response to the announcement, the S&#038;P 500 closed the June 15 session up almost 1.5%, and the Dow Jones Industrial Average up 1%, according to TradingView.<\/p>\n<p>The crypto market also rose after the FOMC meeting. Bitcoin prices over the past 24 hours rose 2.7%, Ethereum 4.7%. All top-10 coins by market cap were in the green, according to <a href=\"https:\/\/www.coingecko.com\/\">CoinGecko<\/a>.<\/p>\n<p>As of writing BTC was trading near $21,770, ETH near $1,170.<\/p>\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"489\" data-id=\"176036\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/BTCUSDT_2022-06-16_09-52-03-1024x489.png\" alt=\"Fed rate rise. Bitcoin and Ethereum react with gains\" class=\"wp-image-176036\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/BTCUSDT_2022-06-16_09-52-03-1024x489.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/BTCUSDT_2022-06-16_09-52-03-300x143.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/BTCUSDT_2022-06-16_09-52-03-768x366.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/BTCUSDT_2022-06-16_09-52-03-1536x733.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/BTCUSDT_2022-06-16_09-52-03.png 1834w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Hourly chart BTC\/USDT on Binance. Data: TradingView.<\/figcaption><\/figure>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"457\" data-id=\"176035\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/ETHUSDT_2022-06-16_09-52-25-1024x457.png\" alt=\"Fed rate rise. Bitcoin and Ethereum react with gains\" class=\"wp-image-176035\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/ETHUSDT_2022-06-16_09-52-25-1024x457.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/ETHUSDT_2022-06-16_09-52-25-300x134.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/ETHUSDT_2022-06-16_09-52-25-768x343.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/ETHUSDT_2022-06-16_09-52-25-1536x685.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/ETHUSDT_2022-06-16_09-52-25.png 1834w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Hourly ETH\/USDT on Binance. Data: TradingView.<\/figcaption><\/figure>\n<\/figure>\n<p>In December 2021 the Fed <a href=\"https:\/\/u1f987.com\/en\/news\/fed-signals-three-rate-hikes-in-2022-amid-inflation-risks\">allowed<\/a> three rate hikes in the following 12 months. The reason \u2014 inflation picked up.<\/p>\n<p>In March the regulator, for the first time since 2018, <a href=\"https:\/\/u1f987.com\/en\/news\/fed-raises-rates-for-first-time-since-2018-bitcoin-and-sp-500-rise\">raised the target range<\/a> to 0.25-0.5%. Traditional and crypto markets reacted to the decision with gains. Among digital assets, the local rally continued until April \u2014 Bitcoin and Ethereum <a href=\"https:\/\/u1f987.com\/en\/news\/march-2022-in-numbers-terra-rally-19-million-bitcoins-m-mined-and-russia-sanctions\">hit year-to-date highs<\/a>.<\/p>\n<p>In May the Fed again <a href=\"https:\/\/u1f987.com\/en\/news\/fed-shocks-markets-bitcoin-climbs-above-40000\">raised rates<\/a>. Contrary to forecasts, the central bank\u2019s policy proved softer \u2014 the target range rose by 50 bps (vs. 75 bps expected).<\/p>\n<p>Against this backdrop, Bitcoin briefly surpassed $40,000, but the surge was short-lived \u2014 the same day Bitcoin <a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-price-slips-below-36000\">fell below $36,000<\/a>, marking the start of a protracted correction.<\/p>\n<p>Earlier, Galaxy Digital&#8217;s Mike Novogratz said that <a href=\"https:\/\/u1f987.com\/en\/news\/mike-novogratz-bitcoin-holds-above-20000-ethereum-unlikely-to-slip-below-1000\">Bitcoin prices would hold above $20,000<\/a>, and Ethereum would not drop below $1,000.<\/p>\n<p>Read ForkLog Bitcoin news in our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 news on cryptocurrencies, rates and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve raised the target range for the federal funds rate by 75 basis points at its June 14-15 meeting, to 1.5-1.75%. The move marked the regulator&#8217;s first such increase since 1994.<\/p>\n","protected":false},"author":1,"featured_media":62978,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[480,1249,1224],"class_list":["post-62977","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin-price","tag-federal-reserve-system","tag-macroeconomics"],"aioseo_notices":[],"amp_enabled":true,"views":"27","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/62977","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=62977"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/62977\/revisions"}],"predecessor-version":[{"id":62979,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/62977\/revisions\/62979"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/62978"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=62977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=62977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=62977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}