Against the backdrop of these events, Ethereum fell below $1.6 k and reached a new 14-month low against Bitcoin. Other cryptocurrencies also suffered losses: Solana, MATIC, Lido and Optimism fell from 3% to 5% during the day.
The Fed predicted another rate hike this year and a slight cut next year, which caused unrest in the traditional market.
The 10-year Treasury yield rose to a 16-year high and the DXY index briefly rose to 106 points. The index is the highest since the US regional banking crisis in March.
US stock markets reacted to the news by falling: the S&P 500 index lost 1.6 per cent and the Nasdaq Composite fell 1.8 per cent.
According to QCP Capital, the tension in the stock market due to the Fed’s policy tightening could affect the value of cryptocurrencies.
Edward Moyi, senior market analyst at online brokerage platform Oanda, said that higher rates will also put pressure on cryptocurrency companies and increase their refinancing costs.