Several popular cryptocurrencies, apex crypto Bitcoin BTC/USD, second-largest market cap crypto Ethereum ETH/USD and meme crypto Dogecoin DOGE/USD have experienced marked weakness in recent sessions.
Crypto has traded lower in recent sessions in tandem with major U.S. indices, which are also experiencing marked weakness after the Federal Reserve last Wednesday afternoon raised its target fed funds rate by 75 basis points to a new range of between 1.5% and 1.75%, its largest interest rate hike in 28 years.
The tightening isn’t over yet as Fed Chair Jerome Powell last Wednesday said another 0.75% rate hike is on the table for the next Fed meeting in July… Read More
Cryptocurrencies have also been seen by some investors as a speculative hedge against inflation and the Fed’s plans to curb inflation could weigh on the broader cryptocurrency sector.
On Wednesday, the Federal Reserve also released new “dot plot” economic forecasts. All 18 members are now projecting interest rates will reach 3% by the end of 2022. Five members now see interest rates topping 4% in 2023.
According to data from Benzinga Pro, over the past month:
- Bitcoin is lower by 30.20% to $20,350
- Ethereum is lower by 43.93% to $1,090
- Dogecoin is lower by 29.20% to $0.059