Here's Why Bitcoin And Ethereum Are Surging

The crypto market is surged after the Federal Reserve raised the target fed funds rate by three-quarters of a percentage point.

The Fed on Wednesday hiked rates by 0.75%, bringing its target fed funds rate up to a range of 2.25% to 2.5%.

The bond market had been pricing in a 50% chance that the Fed would raise rates by 1%, as reported by Benzinga earlier in July.

Many view Bitcoin as a speculative inflation hedge because of its fixed supply.

A more aggressive anti-inflationary decision by the Fed could have reduced the demand for inflationary hedge assets

The central bank said it will continue to reduce Treasury securities, agency debt

"the unemployment rate has remained low. Inflation remains elevated" the Fed said in a statement.