This week, the Federal Open Market Committee (FOMC) is due to meet again to decide on another round of interest rate hikes. Bitcoin BTC/USD and Ethereum ETH/USD have increasingly buoyed or plunged due to several macroeconomic factors. One of the key drivers of cryptocurrency prices recently has been the interest rate policy of the U.S. Federal Reserve.
The Last Hike: The central bank of the United States last increased interest rates by 0.75% on June 15, which was the largest such hike in 28 years.
The increase in the rate hikes was to combat burgeoning inflation related to the COVID-19 pandemic and higher energy prices, according to the Fed.
The Investment: If an investor put in $100 each in Bitcoin and Ethereum, the day the rates were bumped up by the Fed, here’s how much they’d have now when BTC and ETH traded for $21,155.78 and $1,426.25 respectively at press time.
| Investment | Date Of Purchase/Listing | Purchase Amount | Purchase Price | Units/Shares Obtained | Worth If Coins/Shares Return To ATH | Percentage Change |
|---|---|---|---|---|---|---|
| Bitcoin (BTC) | June 15, 2022 | $100 | $22,572.84 | 0.0044 | $93.72 | -6.23% |
| Ethereum (ETH) | June 15, 2022 | $100 | $1,233.21 | 0.0811 | $115.65 | 15.65% |
The investor would have a total of $209.37 in the two cryptocurrencies on their $200 investment, a gain of 4.68% since the last time the Fed raised interest rates. The gains from Ethereum would have outstripped the gains in Bitcoin as the two have diverged in prices of late.
Read Next: Coinbase Under SEC Probe Over Crypto Token Listings: Report
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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