Bitcoin, Ethereum, Dogecoin slide after Fed hike

Major coins were trading in the red on Wednesday night as Federal Open Market Committee (FOMC) delivered on its widely expected announcement to raise interest rates by a quarter of a point.

What happened: Apex cryptocurrency Bitcoin BTC/USD currently trading below $28,000.

Ethereum ETH/USD was down 3.31% to change hands below $1,800. Dogecoin DOGE/USD traded at $0.073, down 2.63% in the last 24 hours.

At the time of writing, the global crypto market capitalization was $1.14 trillion, down 2.69% in the last day.

US stocks fell on Wednesday as the Federal Reserve continued to raise interest rates. The S&P 500 and technology-heavy Nasdaq all closed down 1.6 percent.

See more: Best Crypto Day Trading Strategies

News Highlights: The Federal Reserve’s decision to raise interest rates highlights its concern that inflation remains problematic. According to the Fed Chair Jerome Powell, The FOMC is “strongly committed to bringing inflation back to our 2% target”.

However, the FOMC also acknowledged this month’s banking near-meltdown, noting that “recent developments are likely to result in tighter credit conditions for households and businesses and weigh on economic activity, hiring and inflation.”

Twitter boss Elon Musk criticized the rate hike by the Federal Reserve, warning that it could lead to a large influx of depositors leaving their banks – creating headaches for both policymakers and the banking industry amid the ongoing financial crisis.

“A major driver of depositor flight is people moving money from low interest savings accounts to high interest money market accounts (Treasury Bill). This foolish interest rate hike will exacerbate depositor flight,” Musk tweeted.

Analyst Notes: “Risk aversion was able to drag down Bitcoin as market turmoil returned on banking concerns and over a rapidly weakening economy. The Fed may be done tightening, but the risk of something else breaking in the financial sector remains high,” said Edward Moyasenior market analyst at OANDA.

“A crackdown on Crypto influencers was widely expected and seems to be finally here. While the breaches against Lindsay Lohan, Soulja Boy and Jake Paul will not attract serious attention, the alleged fraud and unregistered securities of Tron have been found by Justin Sun newsworthy. Market manipulation is a part of the crypto world that has yet to be cleaned up, or even close to being fully addressed,” Moya added.

Cryptanalyst Michael van de Poppe said Powell is likely to remain on the hawkish side – suggesting that Bitcoin is likely to top out and enter a period of consolidation before further continuation. The analyst said he is interested in the $25,000 levels.

According to pseudonymous analyst Kaleo, the transition from $30,000 to $40,000 in Bitcoin could happen much faster than most people expect. “A lot of people who *want* to be bulls but are waiting for a dip will be left watching from the sidelines.”

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