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- Fed Flips The Crypto Markets Green! | Daily News 28/7/22
Fed Flips The Crypto Markets Green! | Daily News 28/7/22
🥳 A great day for the crypto markets yesterday as we saw Bitcoin push up ⤴️ to levels of almost $23,500 on the back of the Fed announcement, confirming interest rate hike of 75 basis points (0.75%). Of course, the rest of the crypto market followed suit, pushing everything more or less in the green!
📊 We also saw equity markets also do well, especially the Nasdaq - with a push of over 4% increase in the last 24 hours, and the US Dollar Index suppressed ⬇️ which has allowed the general markets that trade against the dollar to grow.
Let’s take a look in more detail! 👇
👑 King of crypto, Bitcoin (BTC) rose above $23K yesterday after the Federal Reserve raised interest rates by another 0.75% and suggested that pace of hikes could potentially slow. As of writing, Bitcoin is currently valued at 🟢 $22,977 - with an 8% price increase in the last 24 hours!
👇 As you can see in the chart below, BTC has found a new temporary range and is sitting just above the support level of around $23K. Of course, with this recent break to the upside, previous indicators like the moving average and bearish trendline have been broken and now investors are awaiting to see 🕵 how the market will react after such an explosive move as well as data 📋 such as the Advance GDP and Unemployment Claims later today! Can this move be organic and create further traction to the upside with bulls claiming its control? Or is this move up a stop hunt? As always ladies and gentlemen, time will tell!
The BTC/USDT hourly chart shows the big move to the upside, off of the Fed’s confirmation of interest rate hikes.
Of course, proof of the move yesterday was the Fed 🏛️ raising its benchmark interest rate by 0.75 percentage points as it looks to fight inflation without tipping the economy aggressively into a recession. The chair of the Fed, Jerome Powell suggested that the pace of rate increases could slow which is what sparked the equity and crypto rally!
💪 The next 24 hours will be a good test of Bitcoin’s resilience, as the market is allowed to breathe from the explosive movements, which is something to always bear in mind whenever we see price volatility play out as we saw yesterday! We could also see risk assets in general, including bitcoin, rally if the ‘Advance GDP’ unexpectedly contracts for a second quarter in a row, confirming a ‘technical recession’.
So an interesting end to this week and month for sure!
Of course, with such an explosive move 🌋 up from Bitcoin, the rest of the altcoin space is in the green!
🟢 Ethereum (ETH) is back up to its local highs of just over $1600, breaking over that 100-day moving average we mentioned yesterday precisely, and is currently up over 11.6% in the last 24 hours.
The majority of the altcoin market is in the 🟢 green, following Bitcoin’s break-out movement with Ethereum Classic (ETC) leading the alts once again, ⏫ with an increase of 25% in the last 24 hours, now over $33 after yesterday’s $27 high.
📰 Uniswap (UNI) 🦄 is also in the top leagues with an almost 25% price increase also, currently valued at over $8.27.
💹 Equity markets closed yesterday in the green on the back of the Fed announcement with the Dow up 1.3%, S&P 500 up 2.6%, and the Nasdaq a whopping 4%! Of course, as would be expected, stock futures are slightly down.
🏛️ We have already mentioned the Fed’s announcement on interest rate hikes throughout this article, but let's look at what else to look for this week. Today, the advance GDP report will be out, as well as Unemployment Claims and Yellen speaking. Eyes will certainly be on this data, to see how the markets will react to this and yesterday's news!
📺 Come and watch today’s market analysis on our NAGAX YouTube Channel where I go through yesterday's announcements and market pumps in more detail, combining TA and fundamentals!
- Bitcoin hits almost $23,500 after the Fed announcement!
- Ethereum Classic leading the altcoin charge in price increase over 24 hours.
- Fed released confirmation of a 0.75% interest rate hike.
- A calmer reaction and bullishness as worries of that 100 basis points simmers off.
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