Fed Announced That A Further 50bps Rise In US Interest Rates Is On the Table - Dow Jones, Bitcoin & US Dollar Rally In Response

Summary:

The market's reaction to the Fed's announcement for the potential for further interest rate hikes.
DJI, Bitcoin and USD

Dow Jones rallied on friday

The Dow Jones rallied during early trading on Friday. The market seems to be attempting to recover from the poor performance of the past week. This price increase comes after the Federal Reserve Chairman announced that two more 50 bp rises in interest rates are on the table for the next two Fed meetings.

The daily rise is unlikely to rule out that the Dow Jones will end the trading week on an overall loss.

Fed Announced That A Further 50bps Rise In US Interest Rates Is On the Table - Dow Jones, Bitcoin & US Dollar Rally In Response - 1

DJI Price Chart

US Dollar reacts well to the Fed's announcement

On Friday the US Dollar strengthened further against its major rival, the Euro. In the wake of the Feds continuing hawkish attitude, the US Dollar is continuing on its strengthening path.

The week for the US Dollar has been volatile, earlier in the week market participants were hesitant to place their confidence in the greenback whilst they awaited the U.S CPI report. When the report exceeded market participants expectations along with the Fed’s recent announcement regarding the likelihood of further interest rate hikes the US Dollar recovered and saw further strength.

Bitcoin showing signs of recovery

The price of Bitcoin has also recovered today after setting its lowest level since December 2021 on Thursday. The price of Bitcoin recovers back up to over $30,000. Whether or not this rally will continue is in question, especially with the volatility the markets saw this past week.

Fed Announced That A Further 50bps Rise In US Interest Rates Is On the Table - Dow Jones, Bitcoin & US Dollar Rally In Response - 2