The crypto market has reacted positively after a 75 basis point interest rate hike was announced, showing it was unimpressed by the Federal Reserve's (Fed) latest decision.
However, analysts see the reaction exhibited by the crypto market as a result of investors having prepared ahead of time to face any adverse possibility.
As soon as the results of the FOMC policy meeting were announced, the price of Bitcoin (BTC) jumped 8% and is now trading at around $23,000.
Higher jumps were also seen in Ethereum (ETH), Polkadot (DOT) and Polygon (MATIC) trading which posted double-digit gains.
Quantum Economics founder Mati Greenspan said that investors had clearly expected worse and that this latest rise was not unusual.
Australian crypto exchange analyst Pav Hundal said he was surprised by the reaction of the crypto market following the Fed's decision.
Even so, he warned that today's US Gross Domestic Product (GDP) data reading could wipe out recent gains in the market.
However, if the data starts to show signs of a stronger economy, the crypto market may continue to stabilize at the $1 trillion market cap and make further gains.
The Fed's efforts to fight inflation by raising interest rates have had a major impact on the crypto market.
However, since the market started adjusting to the current policy tightening, crypto has started to show stability.
This is coupled with Chairman Jerome Powell's latest statement regarding the possibility of rate hikes being slowed and the US economy not being in recession.
