After the Federal Reserve raised rates by 0.75 percentage points rather than 1 percent in an effort to lower high inflation rates, cryptocurrency prices surged quickly.
In afternoon trading, ethereum soared by 15.64 percent to 1,595.01 while bitcoin, one of the most well-known digital currencies, increased by 8.69 percent to 22,786.
The Federal Reserve raised its target rate by 0.75 percent on Wednesday, the second significant rate increase in a row, and stated that it anticipates “ongoing hikes” in the months to come despite slowing economic growth.
The highest change since 1994 was matched by the Fed’s increase to a target range of 2.25 percent to 2.5 percent.
The stock and cryptocurrency markets may have jumped as Fed Chairman Jerome Powell addressed the ramifications of the lesser increase because the financial markets had just started to expect a rate hike of 1%.
