Bitcoin rallies following Fed FOMC announcement of rate hikes next year

Bitcoin price surged over $2,000 quickly as the market quickly reacted to news that the United States Federal Reserve would raise interest rates and curtail its bond-buying program starting in 2022.

The momentum came after the Fed hinted that it could raise its benchmark rate three times next year, surpassing investor expectations. It would also increase the pace of its asset purchasing taper, the central bank said.

Concerns previously focused on such plans having a negative impact on both traditional and crypto markets, thanks to drying up of the "easy" availability of liquidity. In the event, however, it seemed that the information lay uncertainty over the policy to rest.

Alongside, the S&P 500 added modest gains while altcoins joined Bitcoin in inching up just under 5%. At the time of writing, BTC/USD was consolidating at around $48,700, according to CoinMarketCap.

An exit from the most recent range for December would be marked by $53,000, which would also return Bitcoin to a $1 trillion market cap valuation.

The altcoin market continued to be led by Solana (SOL), which capitalized on previous gains to deliver 14% daily growth. Meanwhile, the largest altcoin by market cap, Ether (ETH) recaptured the $4,000 mark during its own Fed-induced rally.

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