It was pulling back on Thursday as cryptocurrency traders – like their stock market counterparts – digested the Federal Reserve’s recent monetary policy decision.
Bitcoin price is down 2% in the past 24 hours to $18,899. While the biggest cryptocurrency left behind its recent bottom below $18,500 — which was reached in a deep sell-off on Monday — bitcoin remains outside the $20,000 to $25,000 range that has traded largely since the mid-June defeat Lower than 30 thousand dollars.
Macroscopic pressures continue to grip the market, with focus on Wednesday’s move by the Federal Reserve to raise interest rates by 75 basis points, or three-quarters of a percentage point, for the third time since June.
While the rally was in line with market expectations, sentiment was dampened by indications that the Federal Reserve would remain resolute in its mission to tame inflation at its highest levels in decades and that rates could rise for longer, raising the risk of a recession.
Cryptocurrencies should theoretically trade independently of mainstream finance, but it has shown that they are linked to other risk-sensitive assets such as stocks, and are also vulnerable to shifts in the macro picture. The Fed’s sharp turn of financial tightening has left digital assets with huge losses in 2022 along with deep declines in the United States.
Dow Jones Industrial Average
Standard & Poor’s 500.
“The rate hike was appreciated, but markets were hoping the Fed would be willing to ease its strategy,” said Michael Safaye, managing partner at cryptocurrency exchange Dexterity Capital. “Once investors absorb the news, cryptocurrency prices will settle into a range bound pattern again. But it is clear that inflation data and the Federal Reserve will continue to shape the direction of the crypto markets.”
According to Safai, cryptocurrencies are likely to remain volatile around recent releases of inflation data and Federal Reserve decisions, but other than that, there are few catalysts that are likely to lead to higher trading volumes or significant price swings.
“More active investors will return to strategies that work well in the range-bound market and look forward to the next round [inflation] Hoping that something will change. “The next two months will test the patience of investors. There will be no easy three-figure gains to be made. There is still money to be made in the markets, but it will come back to quick thinking and even quick execution.”
The second largest digital asset, down 5.8% to below $1,266. Smaller cryptocurrencies, or altcoins, have been rising slightly with both
It reaches about 1%. Memecoins, which were initially meant as online jokes, were also green
rises 0.5% and
The Ripple network token jumped 9.4%, rising since last week to around 30%. The Securities and Exchange Commission filed a lawsuit against Ripple in 2020, alleging that the company improperly sold the token associated with the company. Both the Securities and Exchange Commission and Ripple filed for summary judgments last weekend in an effort to avoid a full trial.
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