Fed Rate Hike Boosts Bitcoin Optimism
The US Federal Reserve‘s decision to raise rates by 25 basis points had a surprisingly positive effect on Bitcoin markets, as investors greeted the news with optimism. Over the past 24 hours, Bitcoin has been trading just above $23,500 and is up 40% since the start of the year. This increase in value is indicative of a growing belief in the potential of cryptocurrencies and their ability to survive inflation and a strong economy. With the Fed’s decision, investors now have greater confidence in the market, and the future of Bitcoin looks bright.
Bitcoin Still Trading Below 200-Week Moving Average
Bitcoin’s recent gains have been encouraging, but according to Mark Connors, head of research at Canadian investment manager 3iQ, the cryptocurrency is still trading below its 200-week moving average. This is an important fundamental catalyst for bitcoin, and Connors believes that it will move higher as it approaches the 200–day average. This sentiment is echoed by a CoinDesk report which suggests that bitcoin and the S&P 500 are approaching an easy–to–track bullish technical signal – a golden cross. This occurs when the 50–day simple moving average (SMA) of the security‘s price moves above its 200–day SMA. With the 200–week moving average in sight, investors may be looking forward to an even further move higher in the value of bitcoin.
Crypto Market Slumps: Major Cryptocurrencies Fall Late in the Day
The cryptocurrency market saw mixed performance on Thursday, with major cryptos Ether, APT, and GALA all declining late in the day. Ether, the second largest crypto in market value, dropped 1.8% to trade near $1,650. APT, the token of layer 1 blockchain Aptos, tumbled 6.5%. GALA, the token of the Gala Games play–to–earn platform, fell 5%. The CoinDesk Market Index, a measure of the crypto market‘s performance, was down 1.8%. Investors should stay informed of the latest news and developments as they continue to monitor the crypto market.
Equity Markets Reap Benefits of Inflation Optimism as Tech Sector Struggles
Equity markets had a strong day on Thursday, with the tech–focused Nasdaq and S&P 500 rising 3.2% and 1.4% respectively. Investors’ optimism about inflation outweighed their concerns about disappointing fourth quarter results from Apple and Alphabet and a wider slowdown in the technology sector. Edward Moya, senior market analyst at Oanda, suggested that financial markets believe inflation will decline more quickly than the Fed is currently expecting. Meanwhile, 3iQ’s Connors reported increasing interest in crypto exchange traded funds (ETFs) with investors pouring more than $200 million into these products in January. Connors was encouraged by the healthy number of investors, noting “we had more smiles”. As the technology sector faces a slowdown, investors are hoping that inflation optimism will continue to bolster equity markets.
Crypto Market Performance: Biggest Gainers and Losers
Crypto investors have been monitoring the recent market performance of leading digital assets. The biggest gainers are Loopring (LRC) at +1.3%, Shiba Inu (SHIB) at +0.9%, and Polkadot (DOT) at +0.4%. On the other hand, the biggest losers are Gala (GALA) at –4.9%, Solana (SOL) at –4.0%, and Dogecoin (DOGE) at –3.8%. According to Connors, the current growth is sustainable as people are entering the market with an understanding of the market‘s fundamentals. In addition, there is no fear of missing out (FOMO) as the entry price point is attractive to serious investors.
FOMC Rate Decision Boosts Bitcoin and Ether Trading Volume
The Federal Open Market Committee‘s (FOMC) rate decision has resulted in an increased trading volume for both Bitcoin (BTC) and Ether (ETH). About $32 billion worth of BTC changed hands on Thursday, a 20% increase over the previous day and 40% higher than the day prior to the Fed decision. Meanwhile, Ether saw a 30% increase in trading volume and a 60% increase over the FOMC announcement. This data from exchanges across all spot markets reflects increasing investor optimism and a settling of the formerly challenging macroeconomic picture.
