Bitcoin (BTC), Ethereum (ETH) Rise After Fed Rate Raise


Bitcoin and Ethereum traded higher Wednesday evening as the global cryptocurrency market cap jumped 4% to $974.2 billion.

Major Coin Price Performance Coin 24-Hour 7-Day 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 24-Hour % Change (+/-) 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 it matters: Cryptocurrencies were relatively subdued compared to other risky assets on a day when the US Federal Reserve made its sharpest rate hike in 28 years.

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

The US central bank has released new “dot plot” economic forecasts, according to which all 18 of its members forecast interest rates to reach 3% by the end of 2022.

The S&P 500 and Nasdaq closed 1.5% and 2.5% higher, respectively, on Wednesday. At the time of writing, S&P 500 and Nasdaq futures were up 0.7% and 0.8%.

The Federal Reserve has indicated that more rate hikes are on the way, but rate cuts are coming in 2024, said Edward Moya, senior market analyst at OANDA.

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

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

“The risk appetite is gone and the days of ultra-low rates are behind us. There is not the same speculative mood that existed when bitcoin exploded higher”

Erlam said, “It can still be believed that Bitcoin can thrive in the future, but something that now offers little except speculative rallies will continue to struggle.”

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

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

Traders are sure to react to the big price drops this week, and the 4.5-year high in #BitcoinThe daily token circulation shows how polarized we are. 497k unique $BTC were moved to start the week, the highest amount since December 6, 2017. https://t.co/Bi9aoE92H4 pic.twitter.com/7MuvMPrXUd

— Santiment (@santimentfeed) June 15, 2022

Alternative.me’s “Crypto Fear & Greed Index” flashed “Extreme Fear” at a value of 7 at the time of writing. A value of 0 on the index means “Extreme Fear” and 100 stands for “Extreme Greed”. The index now shows the lowest values ​​over a period of one year.

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

Despite the entrenched bearishness, cryptocurrency trader Michaël van de Poppe says he is “long” on Bitcoin, Ethereum, Avalanche (AVX), Fantom (FTM) and Polygon (MATIC).

I’ve been busy for a long time $BTC$ETH$AVAX$FTM$MATIC now ready to sell with an average profit of 30-150%.

— Michaël van de Poppe (@CryptoMichNL) June 15, 2022

Fellow trader Justin Bennett tweeted that if Ethereum regains the $1,230 level by 8pm EST, we could see relief back to $1,420 and possibly $1,700. At around 9 p.m. EST, the second-largest coin was trading at $1,230.09.

if $ETH To recover $1,230 by today’s close at 8pm EST, we should see some relief to $1,420, possibly $1,700.

— Justin Bennett (@JustinBennettFX) June 15, 2022

Read Next: Bill Gates Slam Crypto, NFTs: Shams Based On ‘Greater Fool Theory’


This post Bitcoin (BTC), Ethereum (ETH) Rise After Fed Rate Raise was original published at “https://www.benzinga.com/markets/cryptocurrency/22/06/27733374/bitcoin-ethereum-trudge-up-dogecoin-pumps-after-sharpest-rate-hike-in-28-years-are-cryptos”

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