Leading cryptocurrencies gained in value this week despite the U.S. Federal Reserve’s announcement on Wednesday that interest rates will be raised by an additional 75 basis points to combat inflation.
Typically, announcements like this are detrimental to crypto markets. Last month, the Fed raised rates by 75 basis points in the steepest hike since 1994. Crypto prices crashed heavily as the cost of borrowing rose, causing investors to dump riskier assets. No such response came this time, with all leading cryptocurrencies posting notable seven-day price gains.
A fierce debate now rages as to whether the United States, after two consecutive quarters of negative GDP growth, is in a recession. The White House thinks not.