Bitcoin, cryptos slightly up after Fed, still at lowest in 18 months

By Ovunc Kutlu

ANKARA (AA) - Bitcoin and cryptocurrencies were slightly up on Thursday after the US Federal Reserve's key decision, but they were still around their lowest level in 18 months.

The price of Bitcoin, the world's largest crypto by market size, managed climbing to almost $23,000 early Thursday, but later fell to $21,230 at 9.10 a.m. EDT (1310GMT), around its lowest level since December 2020.

Ethereum, the world's biggest altcoin by market value, saw its price hitting as high as $1,258, but it was trading at $1,125 at the time.

The total value of the cryptocurrency market was up to $976 billion in early hours before falling to $910 billion. The market, however, is significantly down from $3 trillion market cap that was recorded in November.

The cryptocurrency market is highly correlated to the tech-heavy Nasdaq in recent months, and the pessimism in equity markets is regarded as a major reason behind the steep decline in cryptos.

The Nasdaq futures were down 2.3% at 9.15 a.m. EDT (1315GMT), indicating another opening in negative territory, although the US stocks finished Wednesday on positive note.

The US stock exchanges rallied Wednesday after the Fed raised its benchmark interest rate by 75 basis points on Wednesday, marking its biggest hike in 28 years, and signaled that another 75 basis points of rate hike is on the table for July.

Despite the Fed providing a roadmap in its monetary tightening, investors are still worried that the aggressive rate hikes could cause a recession in the world's largest economy.