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| Photo by David McBee |
Algorand Price Surges After Minimal Rate Hike By Federal Reserve
The cryptomarkets had been declining over the past couple of days in expectation a significant increase of interest rates by the Federal Reserve that was set to be announced yesterday, February 1st.
Instead, the U.S. central bank decided to up the interest rate by only 0.25%. This announcement instantly lead to a sudden bullish surge among cryptocurrencies, including Algorand.
❗️BREAKING: Fed increases rates by only 0.25%. #Crypto surges back to continue bullrun 📈
— AlgoDaddy | News & Guides (@AlgoDaddyBlog) February 1, 2023
Higher Interest Rates Giving Desired Effect
According to the Federal Reserves chairman, Jerome Powell, the increased interest rates are starting to have the desired effect. Consumer spending has cooled in recent month and the Fed is cautiously optimistic about the current situation, but he emphasises that they still have a long way to go
"We're going to be cautious about declaring victory and sending signals that we think the game is won, because we've got a long way to go," Powell told reporters.
The slowed down increase of interest rates positively affects the cryptocurrency markets and Algorand quickly gained over 8% after the announcement, trading at $0.255 on Thursday morning.
