Major coins rose sharply after the meeting Federal Reserve which ended on Wednesday. At the time of writing, the capitalization of the global crypto market has grown by 8% to $1.050 billion.
Performance of major coins Token 24 hours to 7 days Price Bitcoin (CRYPTO:BTC) +7.9% – 2.2% $22,860.56 Ethereum (CRYPTO:ETH) +13.7% +6.4% 1 $627.89 Dogecoin (CRYPTO:DOGE) +7.3% – 4.7% $0.07 Top 24 Hour Earnings (data sourced from CoinMarketCap) 24 Hour Token Change (+/-) Lido DAO Price (CRYPTO:LDO) +35.2% $1.92 Ethereum Classic (CRYPTO:ETC) +31.5% $32.99 Synthetix (CRYPTO:SNX) +24% $3.66
Why is it important
BTC and ETH surged nearly 8% and 14% respectively after news of a 75 basis point interest rate hike.
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Following the meeting of the Federal Committee on the Free Market, the chairman of the Fed, Jerome Powellhas taken a more dovish stance on future rate hikes, according to CNBC.
“As monetary policy tightens further, it may be wise to slow growth as we assess how our aggregate adjustments impact the economy and inflation.”
Powell drew attention to the possibility of a recession in the US economy and said that although growth was negative in the first quarter, it should be slightly positive in the second.
Edward Moyaa senior market analyst at OANDA, noted that Powell does not rule out another 75 basis point rate hike at the next Fed meeting, but that the rate of increase is expected to slow at some point.
“There will be no clear green light to buy risky assets until we have evidence that inflation is falling. Inflationary risks will remain elevated as energy shortages are likely, supply chain problems will not ease given the deteriorating global outlook, and the pandemic outlook remains worrisome,” the expert commented.
Regarding cryptocurrencies, Moya stated: “The FOMC decision raised optimism that the monetary tightening has ended, which caused a good rise in risk assets, which helped lift cryptocurrencies.”
“Given the dominance of technology stocks, it is not surprising that the cryptocurrency has stabilized. Digital token trading could move here as a surge in returns appears to be materializing.”
Cryptocurrencies continue to follow risky assets like stocks. The S&P 500 and Nasdaq rose 2.6% and 4.1% respectively on Wednesday after the rate hike was announced.
Nick HillHead of Business Consulting at a UK-based digital asset brokerage firm. GlobalBlockexplained that the fact that Bitcoin follows risky assets such as tech stocks is not a systematic case, adding that it is difficult to predict when this correlation will end.
“It will be difficult to predict when this reversal [la baisse des prix du BTC] will happen, maybe in late 2022, early 2023 or earlier? A complex combination of economic factors will make market timing of any reversal or even decoupling of broader risk asset performance a difficult decision for investors! »
Michael van de Poppe tweeted three perfect ingredients for a “summer relief rally”.
A crypto trader sees Ethereum at $2,400 and Bitcoin between $28,000-$30,000.
Here are the perfect ingredients for a Summer Relief Rally:
� Powell is becoming dovish about politics and becoming increasingly dependent on data.
The $ETH merger will take place in September.
� Significant impact on 3AC, Celsius and more has already been taken into account.
I see $ETH up to $2,400 and $BTC up to $28,000-30,000.
— Michael van de Poppe (@CryptoMichNL) July 27, 2022
Meanwhile, data from Glassnode indicates that the price of BTC has exceeded the strike price — a reference to the value of all tokens at the price they were bought for, divided by the number of coins in circulation.
#Bitcoin just surged above the Realized Price, which is currently trading at $21,800.
This represents the average bid price of $BTC coins, valued at the time they last moved down the chain.
Live chart: https://t.co/US6j4k5h4C pic.twitter.com/0LbXAdtNTz
— glass node (@glassnode) July 27, 2022