The Fed's Effect Fades, Crypto Trading Turns Green Again

Cryptocurrency prices rebounded on Friday (September 23rd), after plummeting due to the impact of the United States Federal Reserve (The Fed)'s decision to raise its benchmark interest rate by 75 basis points on Wednesday (September 21st).

However, the impact of The Fed's interest rate hike appears to be waning. Most major crypto prices strengthened in Friday's (September 23rd) trading.

According to data from CoinMarketCap at 09:50 WIB, Bitcoin strengthened by 3.78% to US$19,374.17 per coin, equivalent to Rp291,174,400.93 per coin (assuming an exchange rate of Rp15,029/US$). Ethereum, meanwhile, rose by 5.35%, from US$1,254.51 per coin the previous day to US$1,331.46 per coin.

Among major cryptocurrencies with a market capitalization above US$1 billion, XRP surged the most, rising 22.7% to US$0.513 from US$0.4 the previous day. Binance USD, however, saw a slight correction of 0.04%.

For information, The Fed raised its benchmark interest rate by 75 basis points (bps) to a range of 3%-3.25% on September 21st, 2022.

"Recent indicators point to moderate growth in spending and production. Job growth has been robust in recent months, and the unemployment rate remains low," The Fed explained in its press release.

This interest rate hike by The Fed is the fifth consecutive increase in recent months. In total, The Fed has raised its benchmark interest rate by 300 bps between March and September 2022.

This aggressive policy has pushed The Fed's interest rate to its highest level in 14 years, or since January 2008, as shown in the graph.

(read: The Fed Raises Interest Rates Again, Reaching the Highest Level in 14 Years)