Bitcoin is relatively unaffected by the Fed's interest rate increase

Ether, the second-largest cryptocurrency by market capitalization, recently changed hands near $1,510, down more than 4 percent after the Federal Reserve decided to continue tightening monetary policy for months.

Meanwhile, major stock markets tumbled following the Fed announcement, with the tech-heavy Nasdaq down 3.3%, the S&P 500, and the Dow Jones Industrial Average (DJIA) down 2.5% and 1.5%, respectively. Investors remain concerned about the central bank's strategy to deal with rising prices and the prospect of a deep recession. Safe-haven gold fell 0.7%.

Technical Records

The BTC market is entering a new phase of a potential accumulation season

The sharp declines in Bitcoin and Ethereum over the past few months have provided bullish investors with an opportunity to accumulate at a low cost. Larger crypto investors continue to explore this opportunity.

Bitcoin has been trading in a tight range for almost five months, with support hovering around $19,000 most of the time. Ether has fallen to $1,000 but has been hovering around $1,300 for most of the same period. Both are now up a notch with support above $20,000 and $1,500, respectively.

The rate hike came as the Federal Open Market Committee (FOMC) raised interest rates by 75 basis points for the fourth time in a row in response to the Fed's painstaking efforts to curb inflation without tipping the U.S. economy into a deep recession. Cryptocurrency markets have largely reacted to central bank currency swings and other macroeconomic events, typically rising on encouraging news and falling when investors are more pessimistic. This reaction is normal in asset markets across all walks of life.