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Martina Havranová
May 6, 2022, 6:00pm
Reading time: 0:37

US Stocks And Cryptocurrencies Plummeted. Bitcoin Fell By 11%

The US Federal Reserve's decision to raise interest rates by 0.5% was followed by a strengthening in the value of stocks and cryptocurrencies. Shortly afterwards, there was a major downturn.

Martina Havranová
May 6, 2022, 6:00pm
Reading time: 0:37
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US Stocks And Cryptocurrencies Plummeted. Bitcoin Fell By 11%
Zdroj: Pixabay/free use
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The US stock market experienced a significant downturn. The S&P 500, which includes the 500 largest companies listed on the US stock exchanges, fell by more than 3.5%. The Nasdaq technology index fell by 5%. Cryptocurrencies also decreased, with bitcoin falling by 11% and Ethereum by 8.7%.

 

The stock market's downturn was preceded by a decision by the US Federal Reserve to raise interest rates by 0.5%. This is the most significant increase in interest rates since 2000. Shortly after the announcement, the price of shares and cryptocurrencies rose sharply, which later turned out to be a momentary phenomenon, followed by a slump.

 

 

The reason for the decline in value could be investors' fears that the current increase in interest rates will not be enough to fight inflation and the US Federal Reserve will have to take more substantial measures. The combination of rising costs due to inflation and reduced productivity is particularly problematic for them.

 

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Thumbnail: Pixabay/free use
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