Crypto and traditional markets fall following Fed meeting

According to the report of the meeting of the Federal Open Market Committee published today, the Fed will maintain its plan to raise interest rates in March. Although this decision is not a surprise, the markets are still shaken.

Both crypto and traditional markets fell following today’s FOMC meeting report and corresponding press conference by Fed Chairman Jerome Powell.

the Federal Open Market Committee announced that, while he did not recommend an immediate increase in interest rates, he would stick to the phased emissions reduction plan he announced last December, i.e. would end its asset purchases by early March and raise interest rates.

Bitcoin and Ethereum prices rose in the minutes leading up to the FOMC announcement at 2 p.m. EST, then rose again in the minutes after. Bitcoin rose from just under $38,000 to nearly $38,750 – Ethereum’s price action saw a similar move.

However, the positivity was short-lived as both assets began falling ahead of Fed Chairman Jerome Powell’s Q&A session. Both coins have erased their gains for the day now. Stocks followed a similar pattern: the Nasdaq and the Dow Jones index fell sharply after Powell’s speech.

Chairman Powell emphasized that the Fed’s congressionally mandated monetary goals were full employment and price stability. He pointed out that his main means of achieving these objectives was to modulate interest rates. The question of how much the rates will increase (0.25% seems expected), however, seems to have frightened investors.