Bitcoin and several altcoins are on a bullish momentum after the US Federal Reserve hiked interest rate by 0.25 basis points and announced plans for balance sheet expenditure.
The Federal Open Markets Committee statement notes that the rates were likely to be increased gradually due to the rising energy prices and the supply-demand imbalance.
The committee has had meetings in the past two days to discuss plans that can bring down inflation to about a 2% target from the current 40-year record levels.
The Fed, which increased the interest rate to the highest level in about five years, says the Russian invasion of Ukraine could also contribute to the surge.
Fed’s Chair Jerome Powell has also announced plans by the institutions to shrink its balance sheet expenditure, saying that inflation could take time before retracing to about 2%.
Bitcoin has jumped to trade at about $41k in a 4.46% price jump, while Nasdaq and S&P 500 indices have turned in gains of over 2 %, reflecting their correlations.
Source: Federal Reserve