On the 1st of February, after the Federal Reserve increased the interest rates by 25 base points, the price of Bitcoin, the leading cryptocurrency in the market, hit the 24,000 mark, which it hadn’t seen since mid-August last year. According to data from CoinGecko, the price of the leading cryptocurrency increased by more than 3.5% over the past 24 hours. BTC is currently, as of this writing, trading at around $23,800. And over the past 30 days, the value of Bitcoin soared by more than 42%.
This latest high price action of BTC came after Fed hiked interest rates from 4.5% to 4.75%. In January, the leading cryptocurrency gained almost 40% in value, which is its best performance since 2013, as per data from Bitcoinmonthlyreturn.com. Despite the steady growth of the economy, this interest hike shows that the policymakers are still concerned about inflation, which is a 40-year high. But James Butterfill, the Head of Research at CoinShares, said that the markets aren’t purchasing it.
It’s not only the leading cryptocurrency that enjoyed a huge increase despite Fed’s increased interest rates, as some other cryptocurrencies and tokens available in the market also followed the same trend as Bitcoin followed. For example, Ethereum, the second-largest cryptocurrency in the market increased by more than 6.2% over the past 24 hours. According to data from CoinGecko, ETH is currently, as of this writing, trading at around $1,670. The reason behind the price increase of ETH is also related to Ethereum’s preparation for its much-anticipated Shanghai upgrade, through which users can withdraw staked ETH.
Moreover, Polygon’s native token MATIC increased by more than 13% over the same period. According to data from CoinGecko, MATIC is currently trading at around $1.23, which is its three-month high value. And Binance’s native token BNB also increased by more than 7.4% over the past day. Cardano rosed over 5.6% over the same period.