Against a background of galloping overinflation and in a somewhat save mode, the US Federal Reserve unveiled a new increase in its key rates this evening. If the amplitude of this increase (0.75 basis points) although substantial, is not strictly speaking a surprise, the amplitude of the reaction of Bitcoin and the crypto market, on the other hand, took everyone a little by surprise.
No one will feign surprise now. For the 4th time already this year, the US Federal Reserve (FED) has raised its key rate. An increase of 0.75 basis points this time (for a rate now reaching 2.5%). This increase, while being the highest since 1994, was fairly widely anticipated by the economic consensus, making it possible to consider its tangible effects on the financial markets as potentially limited (the news being largely ” price“, that is to say already digested).
On the other hand, the immediate reactions of the crypto market, and that of Bitcoin in particular, generally surprised, the asset class says “ risk on being traditionally the most sacrificed in the face of what is widely perceived as bad news for an ecosystem in perpetual demand for new money.
Bitcoin thus progressed by nearly 9% in 24 hours, and went from 21 to nearly $23,000 immediately after the announcement. The entire crypto marketcap meanwhile is up $40 billion on the day, at the time of writing.
However, this fairly sharp rise should be observed with caution. Indeed, if its amplitude is surprisingly substantial, tomorrow’s announcement of US growth figures (and the prospect that the world’s largest economy is officially entering recession) could quickly turn the tide.
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