Bitcoin & Crypto Market Rises After US Rate Hike, Future Role of US Dollar in Focus
The price of bitcoin (BTC), ethereum (ETH), and most other cryptoassets moved higher today, after the US Federal Reserve (Fed) yesterday raised rates for the first time since 2018, and a discussion about bitcoin’s role in a future monetary regime re-emerged.
As of Thursday at 16:00 UTC, BTC stood at USD 40,915. The price was up by 0.6% for the past 24 hours, after seeing strong gains yesterday that pushed the coin above USD 41,000 for the first time in a week.
At the same time, ETH traded at USD 2,809, up almost 4% for the past 24 hours on what has been a green day for nearly all cryptoassets from the top 100 by market capitalization.
The gains in the market today come after the first interest rate hike in four years in the US yesterday, when the Fed raised rates by 25 basis points for the first time since the onset of the COVID-19 pandemic. The event marked the beginning of a new cycle of monetary tightening from the central bank, as it reiterated its objective of bringing inflation down.
Meanwhile, bitcoin, in particular, has also received renewed relevance as discussions have intensified about the coin’s role in a future global monetary regime that is no longer dominated by the US dollar.
The issue went mainstream and has been covered by multiple media outlets after Western governments cut off Russia’s access to its foreign currency reserves, potentially leading some countries to rethink how their reserves really are.
The discussions were once again brought up today after former BitMEX CEO Arthur Hayes argued in an essay that the move to freeze Russian reserve assets marks the end of the current monetary regime, and that bitcoin and gold will ultimately benefit.
The same topic was also commented on today by Mikkel Mørch,
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