Bitcoin Breaks $23,000. Ethereum Trades Above $1,600Admin
Leading digital assets continued to rise despite the increase in the Fed ‘s key rate range by 75 basis points at once. The capitalization of the cryptocurrency market increased by 8% per day and overcame the level of $1.1 trillion, according to CoinGecko .
Over the same period, Bitcoin has risen in price by 9.5%, Ethereum has added almost 14% in price. At the time of writing, the first asset is trading near $23,150, while the second is trading near $1,645.
According to Coinglass , liquidations in the futures market have exceeded $385 million in the last 24 hours. More than $170 million of this amount was in Ethereum. Basically exchanges forcibly closed short positions.
The traditional stock market also reacted to the Fed’s decision with growth. As a result of the trading session on July 27, the Nasdaq Composite index rose by 4%, the S & P 500 added 2.6%, and the Dow Jones indicator – 1.37%.
According to Alfonso Peccatiello, ex-head of the securities department of ING bank, the reaction of the markets is connected with the words of the head of the Fed, Jerome Powell, about the potential easing of monetary policy in the future.
Peccatiello noted that according to the official, the current rates are in line with “neutral”. He explained that this state of affairs no longer contributes to “overheating or cooling the economy.”
According to the specialist, Powell’s words can be regarded as a refusal to further increase interest rates. At the same time, investors expect lower inflation and future economic growth, which is good for high-risk assets like bitcoin.
“It is possible to rationalize the post – FOMC narrative, but due to the lack of forward guidance, we are in for high volatility in Fed actions. One small step towards tightening and everything is gone, ”he added.
Analyst Michael van der Poppe also noted that Powell is leaning towards easing monetary policy. He emphasized that the upcoming migration of Ethereum to Proof-of-Stake and the fact that the events around Three Arrows Capital and Celsius are “already priced in” have a positive impact on the markets .
The specialist expects Ethereum to rise to $2,400 and Bitcoin to $28,000-$30,000.
According to economist Alex Krueger, the decline in quotations can still be caused by bad corporate reports or a negative forecast for US GDP.
“Today’s rally was so big that crypto funds that missed it should be praying that Amazon and Apple report terrible earnings tomorrow or a negative GDP outlook (very unlikely) is presented that could trigger a fall,” he wrote.