Major currencies fell sharply on Wednesday night as the global cryptocurrency market capitalization declined 2.7% to $896.8 billion as of 8:30 p.m. EDT.
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Because it is important: Ethereum tanked and Bitcoin fell sharply after the US. Federal Reserve issued the third in a row Interest rate hike of 75 basis points on Wednesday.
Risk assets fell sharply after the interest rate decision. The S&P 500 and Nasdaq closed 1.7% and 1.8% lower, respectively, on Wednesday. At the time of writing, US stock futures were trading in the red.
The central bank reiterated its commitment to fight against rising prices. He said: “Inflation remains elevated, reflecting pandemic-related supply and demand imbalances, higher food and energy prices, and broader price pressures.”
Six of the 19 members of the Federal Open Market Committee (FOMC) projected interest rates will peak between 4.75% and 5% in 2023, while 12 see them rising to 4.5% to 4.75% or more in the next year.
OANDA Senior Market Analyst Edward Moya He said the market has bid farewell to a soft landing.
“The Fed made a third consecutive rate hike of 75 bps and signaled that it expects the fed funds rate to rise to 4.6% this cycle. The updated staffing projections were a bit tighter than many expected.”
However, taking stock of Powell’s comments that the FOMC is torn between 100 and 125bp rate hikes for the rest of the year, Moya said: “The tightening ceiling is almost here and that should be a good news for risk assets”.
On the apex coin’s reaction, he said: “Bitcoin found support at the $18,800 level as Wall Street gains confidence that they have an idea of how high the Fed will take rates.”
“Raising rates is a bad thing for crypto because it means it becomes more expensive to borrow because loan payments are higher and therefore entices people to save more, which is what central banks want to do. drastic measures against persistently high inflation,” he said. overall block analyst marcus sotirioin a note seen by Benzinga.
cryptocurrency trader Michael van de Poppe he said that the period between now and 2023 is “the period to accumulate” and said that it was difficult to predict “moon or doom” for Bitcoin.
People are literally waiting;
And now #bitcoin moon or doom?
We just can’t tell so quickly after such an event; it requires some time.
The markets are pricing in the worst, but all I’m saying is now through 2023 is the period to accumulate.
— Michael van de Poppe (@CryptoMichNL) September 21, 2022
justin bennett he said he expects the market to see “initial” relief after the 75 basis point rally. The trader tweeted that time will tell which direction the apex coin will take.
There is a chance that BTC will take out those long liqs to $18,600 first, but I think the markets would find some initial relief if we see a 75bp rise.
As always, time will tell.
—Justin Bennett (@JustinBennettFX) September 21, 2022
On the Ethereum side, Santimento said on Twitter that after the merger there has been a change in the behavior of large addresses. After the switch to proof-of-stake addresses holding 1,000 to 10,000 ETH, he has shed 2.24% of his cumulative holdings. Smaller owners, with addresses holding between 100 and 1,000 ETH, are down 1.4%, the market intelligence platform noted.
the #ethereal #link September 15 has caused a change in the behavior of large addresses. In the last 6 days since the change to #playtestaddresses with 1k to 10k $ETH they have lost 2.24% of their accumulated shares. Addresses from 100 to 1k have fallen by 1.41%. https://t.co/qdOVcdDjgC pic.twitter.com/fcFy8hTUGD
— Santiment (@santimentfeed) September 21, 2022