Key facts:
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This is the third consecutive increase in interest rates and the second of 0.75%.
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The Nasdaq and S&P 500 indices reacted similarly to the price of bitcoin.
The stock and cryptocurrency markets reacted to the rise this Wednesday, July 27, after the US Federal Reserve (the Fed) announced the increase in interest rates by 0.75%, which takes them to the range between 2, 25% and 2.50%.
The measure is aimed at controlling inflation, which remains at its highest levels since the beginning of the 1980s. Fed President Jerome Powell he pointed that there are recent indicators that both consumption and production have decreased.
This indicates that the aggressive rate increases since March have had the effect of slowing down the growth of the economy. Powell noted, however, that the unemployment rate has remained low and that job growth in the first half indicates that we are not in a recession.
Bitcoin and stocks on the rise
The forecasts on the application of 75 basic points of increase instead of 100 basic points (1%) were considered by the market as a sign of flexibility of the Fed, since last week. The fact that the stricter option was not used, as expected, contributed to the fact that after the announcement, Both the price of bitcoin and that of the main stocks registered a growing momentum.
In the last 24 hours, although it is appreciated that both bitcoin and the shares grouped in Nasdaq and S&P 500 registered a rise after the Fed press conference, the momentum of bitcoin was greater than that of the two mentioned indices.
Nasdaq shows a 4.1% rally in the last 24 hours and S&P shows a rise of 2.5%- Meanwhile, the price of bitcoin achieved an increase of 8.8% in the same period. At the time of writing this article, the price of bitcoin is USD 22,700.