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• The cryptocurrency climbed as high as $40,002
Bitcoin surged about 6% on Wednesday after the US Federal Reserve raised interest rate by half a percentage point or 50 basis points.
The half-point hike in the rates—the biggest jump in 22 years—comes as the country struggles with a high inflation.
Federal Reserve Chair Jerome Powell said, “The American economy is very strong and well-positioned to handle tighter monetary policy,” he said, adding that he foresees a “soft or softish” landing for the economy despite the tightening.
Bitcoin, the world's biggest and best-known cryptocurrency, climbed as high as $40,002 at one point in the day. Crypto assets also rose on the news of rate hike.
Bitcoin, which climbed as high as $68,000 in November, has been unable to maintain the growth pace due to rising inflation, Russia-Ukraine war and tighter Fed policy.
US stock market also surged on Wednesday as the Dow Jones Industrial Average rose 932.27 points, or 2.8%, the S&P 500 advanced 124.69 points, or 3%, while the Nasdaq Composite 401.106 points, or 3.2%.
Picture Credits: Reuters
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