Silvergate Swags, BTC Lag Down to Recover Amid Fed’s Policy Announcements

BTC Sick Nowadays

Fed’s – relatively modest– rate hike on December 14, 2022 may have caused a slight decline in crypto prices. Stocks connected with the crypto industry have also descended, but Silvergate has resisted the downtrend.

At the time of writing, Bitcoin (BTC) is trading at $17,043.92 showing a drop of 6.37% in its value since December 14, as per data from CoinMarketCap. Also, Ether (ETH) is almost 9.84% down at $1,219.19, since December 14 just before indicating a positive tred. XRP is down by 7.29% to $0.3648 at press time.

As per the data , OKB is among the top 3 gainers with a 4.54% increase at a price of $23.90, while Bitcoin SV (BSV) is trading at $48.21 which have seen a 2.62% hike in prices and Toncoin (TON) is at $2.40 with 0.56% increase in the past 24 hours. Whereas, Neutrino USD (USDN), Trust Wallet Token (TWT) and Synthetix (SNX) are among the top 3 losers, which showed a decline in their prices with 14.10%, 9.93% and 8.21% respectively.

Fed’s announcement

According to The Coin Republic, Fed Chairman Jerome Powell noted that the Central Bank is committed to “bring inflation back down to our 2 percent goal.” Also, he highlighted that inflation was worse than expected. Powell noted that the ongoing Russia-Ukraine war had resulted in an increase of food and energy prices, supporting the soaring inflation.

According to CNBC, “The Federal Reserve raised its benchmark rate by half a percentage point, as expected, in its latest attempt to quash inflation.” After the decision taken in the FOMC (Federal Open Market Committee) meeting, the increase of 50 basis points in interest rates caused crypto prices including BTC and ETH to fall. Fed’s policy rate announcements are listed below:

As per media reports, BTC has reacted with a sharp decline this week after the policy changes by the U.S. Federal Reserve. But, crypto veterans suggest that cryptocurrency can experience a Santa Claus rally. U.S. CPI (Consumer Price Index) went up to its four-decade high of 6.8% in November 2022.

According to Nasdaq, Coinbase stock price has dropped from $40.19 to $37.98 accounting for a 5.49% decline in its value. This is due to the FTX collapse, which has adversely affected the market, extending the ongoing crypto winter. Whereas, Silvergate has seen an uptrend recently with a 1.21% increase from $18.71 to $18.94 in its stock price.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing