Bitcoin and Ether fell in Thursday morning trading in Asia along with all other top 10 cryptocurrencies by market cap, excluding stablecoins, as the US Federal Reserve announced a fourth consecutive rate hike of 75 basis points on Wednesday. Major meme coins Dogecoin and Shiba Inu posted the biggest losses after several days of significant gains following Elon Musk’s purchase of social media platform Twitter Inc.
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- Bitcoin fell 1.5% to $20,147 in the 24 hours to 8 a.m. in Hong Kong, while Ether fell 3.8% to $1,517, according to data from CoinMarketCap. Solana saw significant losses, falling 4.8% to $30.71, while Cardano fell 4% to $0.38.
- The Shiba Inu token fell 7.8% to $0.00001176, although it was still trading down 8.8% in the last seven days, while Dogecoin fell 9.4% to $0.12, although it was still up more than 70% last week. Since buying Twitter, Elon Musk has tweeted images of shiba inu dogs, the dog breed on which the Doge meme is based, and has floated the idea of integrating Dogecoin as a payment method on the platform.
- Sitting off the CoinMarketCap listing, Litecoin gained 10.1% to change hands at $60.52 after hitting a six-week high of $62.12 overnight. This follows payment services company MoneyGram International, Inc. announcing that it was joining Trade Bitcoin, Ethereum and Litecoin in your app.
- US stocks closed lower on Wednesday. The Dow Jones Industrial Average fell 1.5%, the S&P 500 Index closed down 2.5% and the Nasdaq Composite Index fell 3.4%.
- The Fed voted unanimously to raise its benchmark interest rate by 75 basis points at its November meeting on Wednesday, raising the overall rate to a 15-year high of 3.75% to 4%. At the press conference announcing the hike, Fed Chairman Jerome Powell said it was “very premature to talk about a pause” in interest rate hikes; however, he seemed to suggest a slowdown from the current pace could be expected at upcoming Federal Open Market Committee meetings.
- The Fed raised interest rates from near zero in March to the current 3.25% as inflation hit a nearly 40-year high of 8.2% in September. The Fed has indicated that it will continue with this policy until inflation returns to a target range of 2%.
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