{"id":67510,"date":"2022-09-21T21:16:54","date_gmt":"2022-09-21T18:16:54","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=67510"},"modified":"2025-09-07T06:59:22","modified_gmt":"2025-09-07T03:59:22","slug":"fed-raises-policy-rate-bitcoin-slides-below-19000","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/fed-raises-policy-rate-bitcoin-slides-below-19000\/","title":{"rendered":"Fed raises policy rate; Bitcoin slides below $19,000"},"content":{"rendered":"

On Wednesday, 21 September, the U.S. Federal Reserve (Fed) raised<\/a> the target range for its federal funds rate by 75 basis points, to 3\u20133.25%. The crypto market reacted with a drop.<\/p>\n

\n

“The central bank aims to achieve maximum employment and inflation at 2% in the long run,” the Fed said.<\/p>\n<\/blockquote>\n

The Fed will also continue to shrink holdings of Treasuries and mortgage-backed securities, as well as agency debt. The Fed reiterated global economic headwinds.<\/p>\n

Against the news, Bitcoin traded below $19,000. At one point, digital gold traded as low as $18,666.<\/p>\n

\"Fed
Hourly BTC\/USDT chart on Binance. Data: TradingView.<\/figcaption><\/figure>\n

Most cryptocurrencies from top-10 by market cap were in the red zone. The biggest losses over the past 24 hours were XRP (-3.1%), Cardano (-0.8%), and Ethereum (-0.7%).<\/p>\n

\"Fed
Data: CoinGecko<\/a>.<\/figcaption><\/figure>\n

According to CoinMarketCap<\/a>, the total market capitalization of cryptocurrencies stands at around $920 billion.<\/p>\n

In March the Fed raised the target range for the federal funds rate<\/a> to 0.25\u20130.5%. The local crypto rally continued through April \u2014 Bitcoin and Ethereum reached annual highs<\/a>.<\/p>\n

In May the Fed raised the rate again<\/a> \u2014 by 50 bps. In the wake of the news Bitcoin breached the $40,000 mark, but on the same day fell below the $36,000 level<\/a>, which started a prolonged correction.<\/p>\n

In June the Fed raised the target range for the federal funds rate<\/a> by 75 basis points for the first time since 1994. The reading reached 1.5\u20131.75%, and Bitcoin reacted with a brief rally to $22,000, after which it collapsed below $18,000<\/a>.<\/p>\n

In July the rate hike<\/a> to 2.25\u20132.5% led to a rise in the crypto market. Bitcoin then breached $22,000, and Ethereum \u2014 $1,500.<\/p>\n

In late summer the digital gold reacted to the remarks by Fed Chair Jerome Powell falling below the $21,000 level<\/a>.<\/p>\n

Read ForkLog’s Bitcoin news on our Telegram \u2014 cryptocurrency news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"

On Wednesday, September 21, the U.S. Federal Reserve (Fed) raised the target range for its federal funds rate by 75 basis points, to 3\u20133.25%. The crypto market reacted with a drop.<\/p>\n","protected":false},"author":1,"featured_media":67511,"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":[480,1249,1440,1224],"class_list":["post-67510","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin-price","tag-federal-reserve-system","tag-jerome-powell","tag-macroeconomics"],"aioseo_notices":[],"amp_enabled":true,"views":"25","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/67510","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=67510"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/67510\/revisions"}],"predecessor-version":[{"id":67512,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/67510\/revisions\/67512"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/67511"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=67510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=67510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=67510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}