Following the Fed’s decision, U.S. stocks fell. Bitcoin has developed a strong correlation with U.S. stock indices, particularly the tech-heavy Nasdaq. The largest crypto exchange in worldwide, Binance, came under fire this week after halting withdrawals of the stablecoin USDC, which caused investor concerns about the business. Binance, on the other hand, resumed withdrawals after about 8 hours of downtime. The U.S. Federal Reserve signaled that there would be additional interest rate increases on Thursday, and investors continued to keep an eye on the effects.
It happened after the biggest digital currency in the world surpassed £18,000 for the first time in more than a month on Wednesday, peaking at $18,356.50. Ether, which hit a more-than-one-month high of over $1,350 on Wednesday, also fell.
After the Federal Reserve of the United States increased its benchmark interest rate by 0.5 percentage points to its highest level, with additional increases anticipated next year, the price of bitcoin dropped below $18,000.
Since their inception, cryptocurrencies have been among the most advantageous innovations for the global economy and society. To improve this ecosystem, cryptocurrencies such as Ethereum (ETH) and IOTA (MIOTA) have taken various approaches.
New features are frequently added to improve Decentralized Finance’s overall effectiveness and efficiency (DeFi). The more these advancements are implemented. The decentralized operation of cryptocurrencies, their goods, and their services served as the inspiration for the development of Ethereum. The native token of the Ethereum platform and the blockchain is called ether (ETH). On the Ethereum network, a portion of the newly created Ethereum (ETH) tokens are distributed to ETH miners. The supply of these ETH tokens is expected to grow at a rate of 4% per year, with a portion allocated to miners to ensure the network’s survival.