Federal Reserve (Fed) Chairman Jerome Powell's statement at the FOMC meeting early this morning that the central bank is likely to continue aggressive monetary policy has caused the mother of all cryptocurrencies Bitcoin (BTC) and the stock market to experience a drastic fall.
It is understood that crypto markets such as BTC and Ethereum (ETH) surged in price when the Fed announced a 75 basis point interest rate hike on the expectation that it would be the last time the Fed would do so, but the opposite happened after the Fed signaled the opposite.
This follows because the central bank will continue to increase interest rates until inflation decreases.
The following action was taken as the Fed is confident that the latest rate hike will help curb inflation in the future and return inflation to the 2 percent target over time.
It is even mentioned that the Russia-Ukraine war against the global economy will create an increase in inflation and burden global economic activity.
As of this writing, BTC has broken through the $20,705 zone but is currently trading at the $20,237 price level, which is a 1% decline in the last 24 hours.
Meanwhile, the second largest cryptocurrency ETH also received the same temps, dropping by 2.5% in the past day and hovering in the $1,532 zone.
Meanwhile, the crypto market is currently following the movements of the stock market as investors who deal in equity have sold their assets that are considered risky.
