HomeBusinessBitcoin (BTC), Ethereum (ETH) Surge After Fed Rate Hike

Bitcoin (BTC), Ethereum (ETH) Surge After Fed Rate Hike

Bitcoin and Ethereum As of Wednesday evening, as of press time, the global cryptocurrency market capitalization rose 4% to $974.2 billion.

Price performance of major coins
Piece of money 24 hours 7 days Price
Bitcoin BTC/USD 2.3% -25.2% $22,557.73
Ethereum ETH/USD 2.7% -30.8% $1,236.28
Dogecoin DOGE/USD 11.9% -22.1% $0.06
Top 24 hour gainers (data via CoinMarketCap)
Cryptocurrency Variation in % over 24 hours (+/-) Price
Basic Attention Token (BAT) +25% $0.36
Elrond (EGOLD) +24.3% $57.05
Helium (HNT) +22.2% $11.63

See also: Best USDC Interest Rates

Why is it important: Cryptocurrencies were relatively subdued compared to other risky assets on a day when the United States Federal Reserve made the biggest increase in interest rates in 28 years.

The Fed on Wednesday raised the target federal funds rate by 0.75% to between 1.5% and 1.75%, noting that inflation remained high.

The U.S. central bank has released a new ‘point’ economic forecast, which says its 18 members expect interest rates to hit 3% by the end of 2022.

The S&P 500 and Nasdaq closed up 1.5% and 2.5% respectively on Wednesday. At press time, S&P 500 and Nasdaq futures rose 0.7% and 0.8%.

The U.S. central bank has signaled that more rate hikes are on the way, but rate cuts are coming in 2024, said Edouard Moyasenior market analyst at OANDA.

“The dot charts show they expect an additional 175 basis points of tightening for the rest of the year with some additional hikes in 2023, before rate cuts are warranted in 2024,” wrote Moya, in a note seen by Benzinga.

Moya’s colleague Craig Erlam said Bitcoin’s trading environment has seen a change and its $20,000 support level looks “very unstable.”

“Risk appetite has been crushed and the days of ultra-low rates are behind us. There is not the same speculative mood that existed when bitcoin was exploding higher”

Erlam said, “There may still be a belief that Bitcoin can thrive in the future, but something that offers little now beyond speculative rallies will continue to struggle.”

Bitcoin is down almost 25% in the past seven days and the volatility has caught the attention of traders, according to Saniment.

The market news platform said the 4.5-year high in Bitcoin’s daily token circulation measurement was an indication of trader polarization. Santiment said 497,000 unique BTC had been moved at the start of the week, the highest since December 6, 2017.

Alternative.me’s “Crypto Fear & Greed Index” displayed “Extreme Fear” with a value of 7 at press time. A value of 0 on the index means “Extreme Fear” and 100 represents “Extreme Greed”. The index now reflects the lowest values ​​over a one-year period.

Alternative.Me’s One-Year “Crypto Fear & Greed Index”

Despite the entrenched downtrend, the cryptocurrency trader Michael van de Poppe says it’s “long” on Bitcoin, Ethereum, avalanche (AVX), Phantom (FTM) and Polygon (MATIC).

Trader friend, Justin Bennett tweeted that if Ethereum recovers the $1,230 level at 8 PM EST, we could see relief at $1,420 and potentially $1,700. Around 9 p.m. EST, the second-largest coin was trading at $1,230.09.

Read more : Bill Gates denounces crypto, NFTs: shams based on the “biggest fool theory”

Must Read