The Federal Reserve on Wednesday enacted its second consecutive 75 basis point hike in an effort to curb runaway inflation without plunging the U.S. economy into a recession. The rise came as a surprise to many who were expecting a 100 basis point increase, causing both the stock market and bitcoin to rebound.
Bitcoin bounced off the daily demand zone at the $20.5 - 21.1k mark and also reached a new high on the daily time frame. The same is true for the overall crypto market cap, which grew to $1.1 trillion. Both still have some room to go before reaching the next supply zone.
Ethereum, on the other hand, saw a large increase of about 31% from the daily demand zone, but reached the first possible resistance level from which it bounced downward.
Next week, the Bank of England's Monetary Policy Committee will vote on the UK interest rate. They are expected to raise rates by 0.25% to 1.5%.
The week will conclude on Friday with non-farm payroll jobs figures being released in the US. The unemployment rate is expected to remain the same as the previous month. The world's largest economy added only 372,000 jobs in June, the lowest figure this year but still better than the economists’ predictions of 265,000.