Federal Rate Hike Impacts Crypto Market, Vasil Hard Fork Countdown Begins

Federal Reserve Rate Hike Impacts Crypto Market

The Federal Reserve has raised interest rates by 75 basis points, causing the crypto market cap to drop to $859.2 billion. This move, aimed at curbing inflation, has led to a bearish market sentiment. The Federal Open Market Committee projects the Federal Funds Rate to reach 4.4% by 2022. Fed Chairman Powell reiterated the commitment to controlling inflation, further unsettling the crypto market.

Despite initial gains that pushed the market cap to $919.4 billion, the crypto market retreated as investors reacted to tighter monetary policies. Other markets, such as the NASDAQ 100, also felt the impact, dropping 1.79%.

Vasil Hard Fork Countdown Begins for Cardano (ADA)

Attention has shifted to Cardano (ADA) as the Vasil Hard Fork countdown begins. The upgrade is expected to boost ADA's price, though ADA has recently dropped 2.26% to $0.432 from its September high of $0.524.

Preparations for the hard fork are progressing, with 39 exchanges completing upgrades and 98% of mainnet blocks now being created by Vasil nodes. Top Cardano dapps by Total Locked Value (TLV) have also confirmed readiness for the upgrade.

Tether Ordered to Provide Financial Statements

In a separate development, the New York Court has ordered Tether to submit balance sheets, income statements, and other financial documents. This move comes amid ongoing scrutiny of stablecoin issuers following the Terra collapse.

Alameda and Voyager Deal Update

Sam Bankman-Fried’s Alameda plans to return a $200 million loan to Voyager Digital in exchange for $160 million in collateral. Meanwhile, FTX and Binance are among the companies eyeing Voyager’s assets.

These developments highlight the interconnectedness of regulatory, market, and technological factors shaping the crypto landscape.