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Following the Fed’s interest rate hike announcement on Wednesday, the dollar fell sharply by 0.72% while Bitcoin rose 4.22%. On widely expected lines, the Fed hiked interest rate by 75 basis points. The Federal Open Market Committee said gains in labor market have been robust recently. It added that the unemployment rate remained low. Reacting to the decision, the cryptocurrencies reacted positively with an increase of 4.22% and 5.33% for Bitcoin and Ethereum respectively. This raises hopes in the crypto community on the possibility of a crypto bull run.
U.S. GDP Figures To Reveal More On State Of Economy
On the other side, the second quarter GDP figures is next big event scheduled for tomorrow. Not just crypto community, the financial markets would be eagerly looking for the U.S. GDP numbers. The GDP figures could bring a reality check for the U.S. economy, while also setting the tone for markets worldwide.
The dollar index stands at $106.341, down −0.81%, according to TradingView. The drop in the U.S. dollar could be a result of a the interest rate hike, against higher expectations in the market. When CoinGape asked what the fall in dollar means, one Mati Greenspan reacted that the hike was below market expectations. “Markets were expecting a larger hike.”
Will The Dollar Weakness Lead To A Crypto Bull Run?
Prior to the FOMC decision, it was predicted that Bitcoin price could rise above $22,000 support level in short term. Thanks to exhaustion in the recent pullback, it was expected that the bullish trend could take over. A potential retracement to the resistance level of $22,490 was predicted before a swing to over $24,000 level. As of writing, Bitcoin was trading at $22,819.77, up 9.16% in the last 24 hours, according to CoinMarketCap. At one stage after the Fed rate hike announcement, Bitcoin went up by over 4% in the space of just an hour.
On the other side, Ethereum (ETH) is up by a staggering 16.63% in the last 24 hours. As of writing , ETH price stands at $1,591.