The Fed’s interest rate hike had no negative impact on the crypto market, and in fact, the bitcoin price rose about 4 percent.
Data shows that against this backdrop, small bitcoin holders have shown a tendency to accumulate cryptocurrency. After the Fed’s interest rate decision, there was a surge in bitcoin purchases among mid- to small-sized whales.
According to data online, holders of 1,000 to 10,000 BTC have since started hoarding. CryptoQuant’s analysis showed that the recent steblecoin hoarding on exchanges was preparation for BTC hoarding.
The bitcoin price rose about 4% that day and has since begun to slowly approach the $24,000 level. The price of Ethereum (ETH) that followed has risen above $1700.
True, some experts believe that in the long term, the rally in the cryptocurrency market is unlikely to be sustainable.
The cryptocurrency market did not start to grow until Powell said that the inflation rate is generally in line with neutral interest rates, one analyst said.