It’s no secret several popular altcoins, including Bitcoin Cash BCH/USD and Ethereum Classic ETC/USD, have experienced marked weakness throughout the month of June. Crypto has traded lower in June in tandem with major U.S. indices, which are also experiencing weakness after the Federal Reserve in June raised its target fed funds rate by 75 basis points to a new range of between 1.5% and 1.75%, its largest interest rate hike in 28 years.
The tightening isn’t over yet as Fed Chair Jerome Powell said earlier this month another 0.75% rate hike is on the table for the next Fed meeting in July… Read More
Cryptocurrencies have also been seen by some investors as a speculative hedge against inflation and the Fed’s plans to curb inflation could weigh on the broader cryptocurrency sector.
The Federal Reserve in June also released new “dot plot” economic forecasts. All 18 members are now projecting interest rates will reach 3% by the end of 2022. Five members now see interest rates topping 4% in 2023.
According to data from Benzinga Pro, over the past month:
- Bitcoin Cash is lower by 48.98% to $99.86
- Ethereum Classic is lower by 41.65% to $14.52