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Bitcoin loses 2.5% after concerns about the future economic situation in the US and in the world were voiced at the Fed meeting. The Fed’s minutes indicate that the US Federal Reserve will take an aggressive stance on fighting inflation by raising rates. Analysts believe that the markets may again experience a big drop.
Bitcoin and altcoins reacted negatively to the Fed protocols
The decline in cryptocurrencies accelerated after the announcement of the Fed’s protocols on Wednesday evening, from which it follows that the US Federal Reserve will maintain a hawkish rate until inflation drops significantly.
The capitalization of the global cryptocurrency market fell by 2.4% to 1.1 trillion dollars.
Participants in the meeting of the Federal Open Market Committee concluded that “the transition to restrictive policies was necessary to fulfill the legislative mandate of the Committee to Promote Maximum Employment and Price Stability.”
Federal Reserve officials said that while future interest rate decisions will be based on incoming data, there are few signs that inflation is declining.
“The stock market and digital assets look beyond the history of inflation, believing that in six months inflation will decrease. This will not happen unless geopolitical tensions in Europe end and the climate catastrophe does not leave scars,” said Martin Hisbok, head of blockchain research at Uphold, a digital trading platform with multiple assets.
“Given the mega-drought, the closure of factories, the sale of natural gas at a price equivalent to the price of oil of $ 400, by September Bitcoin could still undergo a big drop,” Hisbok said.
However, the first cryptocurrency is at an “accumulation point” in the long term, Hismok notes.
“The fact that it hasn’t fallen significantly in recent weeks amid really bad news is an important point.”
GlobalBlock analyst Marcus Sotiriu says technical analysis shows that Bitcoin “faces a critical test in the coming days.”
“The 200-week moving average is just below the current price of $23,700, at around $23,000 — if it doesn’t hold at that level, it will mean a further decline in the coming weeks and the market reversal could be delayed,” Sotiriou said in his report.
Cryptocurrency trader Michael van de Poppe interpreted the FOMC protocol as “dovish” and said that in September the interest rate will rise by 50 basis points, not 75 basis points. “No need to be afraid,” he wrote on Twitter.
Justin Bennett wrote in a tweet that Bitcoin has “the ability to buy for generations to come” below the $23,319.47 mark.
However, in another post, the trader warned his Twitter followers that stocks and cryptocurrencies have not yet bottomed out.
“The S&P 500 simulates the crash of 2008. Even the time after reaching the all-time high (ATH) is almost identical. It’s mind-blowing. The bottom has not yet been in either stocks or cryptocurrency,” Bennett wrote.
Meanwhile, according to the Santiment platform dedicated to market analytics, discussions about the merger of Ethereum are flaring up. Discussions related to Ethereum’s transition to the Proof-of-Stake model from the current Proof-of-Work mechanism erupted on August 11, according to Santiment.
“Discussions #ETHMerge have understandably heated up, and on August 11, this topic really stirred up after the announcement of the date of the merger. Over the past year, the biggest spikes in this topic have marked approximate local highs in the price of ETH,” Santiment (@santimentfeed) wrote on August 17, 2022.
Bitcoin’s hashrate continues to decline. As a rule, the recovery of the hashrate signaled the growth of the first cryptocurrency.
Peter Brandt warns that Bitcoin is in an upward wedge in a bear market – this is a signal for a further fall.
The 3 largest public crypto miners of the United States Core Scientific, Marathon Digital and Riot Blockchain have already lost a total of more than $ 1 billion in this bear market, bloomberg reports.
John Haar, a former asset manager from Goldman, who went to the crypto, in his essay believes that all the attacks on BTC are from lack of education and most people do not understand what BTC is.
Previously, Microstrategy CEO Sailor said that once you understand what BTC is, you’ll just wait for the rest of the world to understand.
The CEO of Kraken says he would never bet against BTC.
$2.37 billion USDT was deposited on Binance yesterday. Perhaps this is a record one-time transfer of stablecoins to the stock exchanges.
IntoTheBlock notes an important zone of $22,700-23,400 in BTC, in this zone 1.36 million wallets bought more than 1 million BTC.
Whalemap also points to the important $22,800-23,400 in BTC zone, an area where there has been an active accumulation of BTC by large wallets.
Delphi Digital points out that in July, the Puell multiplier, one of the most reliable macro bottom indicators for BTC, fell even lower to 0.34, which is the lowest figure since 2019.
Ripple is recognized as one of the fastest growing private companies in the United States by Inc. Earlier, Ripple said that it would consider holding an IPO after the SEC-Ripple litigation ends.
Santiment notes a sharp increase in the activity of large wallets in altcoins.
Arthur Hayes believes that now is the time to start hedging in Ethereum through the shackles in case something goes wrong with the Ethereum update. In general, he believes that cryptocurrencies are in the mode of buying the bottom.
JPMorgan writes that Coinbase will be a “significant beneficiary” of the ETH update due to staking. Earlier it was announced that Coinbase will continue to focus on staking. The company’s goal is to become a leading provider of staking among cryptocurrency companies.
JPMorgan notes that staking today brings the crypto industry revenue of about $ 9 billion per year. Ethereum’s move to PoS following the launch of Ethereum 2.0 will spur the introduction of an alternative consensus mechanism and could lead to an increase in the industry’s staking revenue to $20 billion per quarter and to $40 billion per quarter by 2025.
Bloomberg Intelligence compares the SP500 during the 2008 crisis and now. BBG notes that the current rebound in US stocks so far fits well into the pattern of a “bear rally”.
According to a UTS study, insider trading is observed in 10-25% of all cryptocurrency listings.
Author: Elvir, Analyst Freedman Club Crypto News
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