U.S. markets open in 5 hours 36 minutes
  • S&P Futures

    3,741.50
    +51.25 (+1.39%)
     
  • Dow Futures

    29,894.00
    +356.00 (+1.21%)
     
  • Nasdaq Futures

    11,479.00
    +193.25 (+1.71%)
     
  • Russell 2000 Futures

    1,743.50
    +28.60 (+1.67%)
     
  • Crude Oil

    84.02
    +0.39 (+0.47%)
     
  • Gold

    1,718.60
    +16.60 (+0.98%)
     
  • Silver

    21.05
    +0.46 (+2.21%)
     
  • EUR/USD

    0.9874
    +0.0047 (+0.47%)
     
  • 10-Yr Bond

    3.6510
    0.0000 (0.00%)
     
  • Vix

    29.36
    -2.26 (-7.15%)
     
  • GBP/USD

    1.1399
    +0.0080 (+0.70%)
     
  • USD/JPY

    144.6340
    +0.0140 (+0.01%)
     
  • BTC-USD

    19,930.18
    +723.64 (+3.77%)
     
  • CMC Crypto 200

    452.90
    +17.55 (+4.03%)
     
  • FTSE 100

    6,982.33
    +73.57 (+1.06%)
     
  • Nikkei 225

    26,992.21
    +776.42 (+2.96%)
     

Bitcoin recovers from steep drop after Fed hikes rates by 75 basis points

·1 min read

Bitcoin, the largest cryptocurrency by market capitalization, rose more than 3% on Thursday to recover from a sharp drop to under US$19,000 after the Federal Open Market Committee said it would raise interest rates by 75 basis points, or in line with market expectations, to rein in inflation.

See related article: Digital dollar takes another step in White House’s “first ever” digital assets framework

Fast facts

  • Bitcoin traded at US$19,634 as of 3 am Hong Kong time, while most of the other top 10 cryptocurrencies by market capitalization rose, according to data by Coinmarketcap.com.

  • The S&P 500 (SPX) rose 0.78% while the tech-heavy Nasdaq Composite gained 1.06% after the announcement on Wednesday U.S. time.

  • Bitcoin and other cryptocurrency prices have tended to move more in correlation with equities this year.

  • Fed Chairman Jerome Powell said he is committed to bringing inflation back down to around 2%, from the current rate in excess of 8%, though his challenge is to achieve that without causing a spike in unemployment rate and tipping the economy into a deepening recession.

  • Raising the cost of borrowing is expected to discourage consumers from taking out loans to buy goods like cars or a new home.

  • Earlier this month, the U.S. Bureau of Labor Statistics reported that the Consumer Price Index rose 0.1% in August over July, compared to market expectations for a 0.1% decline. August inflation was up 8.3% on year.

See related article: US Treasury seeks public opinion on digital asset risks