Market Wrap: Stocks, Altcoins Rise Despite Rate Hikes and Ukraine Conflict

Investors are likely expecting a non-aggressive approach to interest rates following Wednesday’s change, leading to a jump in markets


Federal Reserve Chair Jerome Powell | Blockworks exclusive art by Axel Rangel


key takeaways

  • Investors may expect a largely dovish stance from the Fed following its initial rate hike, causing markets to jump
  • Bitcoin remained flat while major altcoins, such as ether and sol, saw a jump of around 2% or more

Bitcoin remained flat Tuesday while other cryptocurrencies and equities rose despite the likelihood of pending Federal Reserve rate hikes and a worsening conflict in Ukraine.

Fed Chair Jerome Powell is scheduled to speak Wednesday after the regulator unveils its next move on interest rates.

The Fed is expected to raise interest rates by a quarter percent in its first increase since 2018. Earlier this month, Powell testified before Congress, saying "I’m inclined to propose and support a 25 basis point rate hike."

The central bank is "prepared to move more aggressively by raising the federal funds rate by more than 25 basis points," he added in regard to the rapidly rising inflation.

But the ongoing situation in Ukraine and its effect on the market may push the Fed to be less aggressive with rates to avoid recession. Investors may expect the Fed to remain largely dovish after its initial rate hike, which could explain Tuesday's jump in stocks.

All major US indices were up on the day, with the S&P 500 rising 2.14% and the Nasdaq and Dow rising 3.16% and 1.82%, respectively.

[stock_market_widget type="accordion" template="chart" color="#5B35D5" assets="^GSPC,^IXIC,^DJI" start_expanded="true" display_currency_symbol="false" api="yf" chart_range="1mo" chart_interval="1d"]

Bitcoin has slowly consolidated over the last few weeks, forming higher lows — but also lower highs. The most popular cryptoasset is likely due for a large spike in either direction. Bitcoin ended stock trading Tuesday down by 0.39%, with ether pushed 1.96% higher.

The Graph, an indexing protocol for querying Ethereum and other networks, was crypto’s biggest gainer of the day among the top 100 coins by market capitalization, with an 18.34% pop.

[stock_market_widget type="accordion" template="chart" color="#5B35D5" assets="BTC-USD,ETH-USD,GRT1-USD" start_expanded="true" display_currency_symbol="true" api="yf" chart_range="1mo" chart_interval="1d"]

Top stories

Story: ConsenSys Plans To ‘Redesign’ MetaMask and Hire 600 New Employees

  • MetaMask eclipsed 30 million monthly active users in January
  • Proceeds from the round, led by ParaFi Capital, will be converted to ether

Story: Hashdex Set To Launch Web3 ETF in Brazil on March 30

  • The fund will allocate to digital assets native to smart contract blockchains such as Ethereum, Cardano and Solana
  • Hashdex has more than 250,000 investors in its products globally

Story: Binance.US Inches Closer to Approval in All 50 States

  • Binance.US is now available in Louisiana, making the exchange accessible in 45 states
  • Different states require different licenses from various regulatory agencies, making approval a lengthy process, Binance.US said

Story: El Salvador’s ‘Volcano Bond’ Could Launch This Week

  • The so-called “volcano bonds” would be the first bitcoin-backed bonds issued by a country
  • The International Monetary Fund has urged El Salvador to remove bitcoin as legal tender, citing volatility and additional risk for the country’s citizens

Going forward

Investors should be prepared for Wednesday's rate hike announcement and Fed Chair Powell's speech, which are likely to move markets. The unfolding situation in Ukraine and its geopolitical implications are also straining on markets, leading to further uncertainty and volatility.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research



Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495M in value locked, doubling Uniswap's Base deployment.


Plus, Imran Khan’s intriguing experiment on the speeds of crypto onramps


The SEC has signaled a timeline to issuers that could lead to a July 23 launch for the ETH funds, people close to the process told Blockworks


PayPal has unequivocally made a name for itself as a crypto adopter among fintech giants


Also, a look into how the highly-debated SAB 121 could end up shaking out for crypto custodians


Vance, an Ohio Republican, is largely seen as crypto-friendly


Plus, all the world is green as prices across the crypto space rally, with solana reaching a nearly two-week high