Bitcoin, Dogecoin Plunge, Ethereum Worst Hit After Fed Rate Hike, But Is There A Silver Lining? – Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)

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.

Price performance of major coins
Currency 24 hours 7 days Price
Bitcoin USD/BTC -2.5% -8.9% $18,444.58
Ethereal EUR/USD -6.4% -24.6% $1,242.58
doecoin DOGO/USD -2.8% -6.6% $0.06
Top 24-hour gainers (data via CoinMarketCap)
cryptocurrency 24 hour % change (+/-) Price
Celsius (CEL) +7% $1.55
Compound (COMP) +3.1% $56.3
XDC Network (XDC) +1.1% $0.03

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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.

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.

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.

Read next: Bitcoin falls below $19,000; Here are the top crypto movers for Wednesday

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