The crypto market fell again after the announcement of the Federal Reserve (Fed) early this morning which announced a 75 basis point increase in interest rates for the third time in a row.
It is understood that interest rates are currently in the range of 300-325 basis points and the Fed expects future interest rate hikes to cause August inflation to be worse than expected.
The Fed's actions to keep inflation soaring with interest rate hikes and quantitative tightening are not good for risk assets as the 75 basis point hike in June has caused bloodshed in the crypto market.
Even so, the interest rate hike this time will not have the same effect as the market has rallied after the initial fall, similar to the situation in July.
Additionally, Bitcoin (BTC) and Ethereum (ETH) hit new lows as the dollar strengthened, but the cryptocurrencies were seen marginally up a few points again in the Asian session on Thursday morning.
For the record, the state of the crypto market can be determined by general stocks as well as macroeconomic conditions and threats such as global financial instability could make the Fed slow its hawkish stance and impact price movements.
