Bitcoin
Other cryptocurrencies mostly fell on Wednesday after the US Federal Reserve (Fed) hinted at a possible moratorium at an upcoming meeting while raising the expected rate by a quarter of a percentage point. there was no change.
Bitcoin’s price fell by about 0.9% over the past 24 hours to $28,400. Most of the decline occurred after the Fed’s 2pm EDT announcement, with prices down about 0.6% after the policy statement was released.
The largest cryptocurrency, up about 70% so far this year, surpassed $30,000 for the first time since June 2022 last month, but has struggled to consolidate above that major mark in the weeks since. However, it has recently regained another important technical level.
Broker FxPro analyst Alex Kupzikevich said before the rate hike announcement that Bitcoin is steadily above the 50-day moving average, proving that the break below is false. .
The dramatic rise in interest rates over the past year (central bank efforts to curb inflation) has blamed cryptocurrencies and equities alike. However, Bitcoin’s resurgence in 2023 came amid hopes that the Fed would soon become more accommodative. That story remains fragile. As expected, the Fed hiked rates by half a percentage point on Wednesday, suggesting it may end with a series of historically rapid rate hikes, but quickly reversed course and delivered rate cuts in the coming months. You did not suggest that you might.
Fed Chairman Jerome Powell’s hawkish tone could destabilize the recent crypto recovery.
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FxPro’s Kuptsikevich said: “Consolidation above $29,300 (start of selling) or below $28,200 (50-day moving average) indicates the market has determined the direction for the next few days or weeks. There may be
Cryptocurrencies other than Bitcoin reacted more positively to the rate announcement. ether— The second largest digital asset — up 1% to $1,890 in the last 24 hours. Smaller tokens are more mixed and Cardano lost 1.4%, polygon 2.4% increase.Mimecoin dogecoin and Shiba Inu Both were down less than 1%.
Please contact Jack Denton at jack.denton@barrons.com.
