'Bullish rate hike' — Why crypto spiked today in the face of bad news
Crypto markets have been pumping since the announcement of a 75 basis point interest rate hike in the United States, with experts explaining that the markets may have been initially bracing for much worse.
On July 27, price of Bitcoin (BTC) surged around 8% to the mid $22,500 mark following the Federal Open Markets Committee (FOMC) decision to raise interest rates yet again. Many other top crypto assets surged in price as well, with Ether (ETH), Polkadot (DOT) and Polygon (MATIC) all seeing notable double-digit gains over the past 24 hours.
Quantum Economics founder and CEO Mati Greenspan on Wednesday jokingly questioned whether this was a “bullish rate hike” on Twitter.
Speaking with Cointelegraph, Greenspan noted that investors were clearly expecting worse and suggested this latest bounce is nothing out of the ordinary.
Markets were expecting a larger hike. https://t.co/HkR8Upfi52
The Fed’s attempts to reel inflation in by increasing interest rates are usually associated with a pullback of investment activity across markets.
However, there are mixed opinions amongst the community about whether the latest pump will have enough momentum to sustain upwards, or if there is a significant retracement on the cards before the market starts to fully recover.
Don't you see that price is just ranging between 19k and 23k during a downtrend and with no signs of accumulation?If you want to buy here, go ahead. Then don't regret it and cry if the market makes new lows, which is likely.I'm not buying.
Pav Hundal, an analyst at Australian crypto exchange Swyftx told Cointelegraph that the company was “surprised at the exuberance of the reaction to yesterday’s rate hike,” as the underlying macro landscape still seems up in the air.
“The
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