The Fed rate hike on Wednesday was a snooze fest. Just like everyone expected, the Fed raised rates by a quarter point. And just like everyone expected, the “dot plot” showed that the Fed expects rates to rise to 3.5% by the end of the year
The only thing that wasn’t entirely expected was the market reaction. Cryptocurrencies, which are often seen as a safe haven asset, soared/
The biggest winner was Ether (ETH), the native cryptocurrency of the Ethereum blockchain. ETH prices jumped 16% on the day. The rally was partly due to the fact that the Ethereum network successfully implemented a “shadow fork,” or test software update, two days earlier than expected. The test puts Ethereum a step closer to its much-anticipated shift from a proof-of-work network to a more environmentally friendly proof-of-stake one.
Altcoins also did well after the announcement. MATIC rose by 9.3% (following the prior day’s 11% decline) and SOL jumped by 5%.
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