We do the research, you get the alpha!
Get exclusive reports and access key insights on airdrops, NFTs and more! Subscribe to Alpha Reports now and improve your game!
Access Alpha reports
Bitcoin And Ethereum rebounded after starting yesterday morning, almost 10% lower than they were on Tuesday.
At the time of writing, the Bitcoin Price is hovering around $57,700 after making a 0.5% rally over the past 24 hours. And the Ethereum Priceafter climbing 2.3% in the last day, is now trading at just under $3,000, according to CoinGecko data.
But the damage is still done. By CoinGlassin the last 24 hours, an additional $193 million worth of crypto futures were liquidated, adding to the 300 million dollars in liquidations seen at the start of the week.
Economist and trader Alex Krüger explained that this current cycle looks so different to traders because it is largely driven by interest in spot Bitcoin ETFs, which just started trading in January of this year.
“There has been virtually no new crypto retail,” he wrote on Twitter. “These are primarily ETF buyers and participants from previous cycles who are redeploying and moving out of the risk curve.”
Analysts primarily attribute the crypto price drop to fear in the market on the certainty among investors that the Federal Open Markets Committee – which sets monetary policy and controls US federal interest rates – would not lower rates. Then the Fed did exactly what the majority of investors thought it would do by keep interest rates unchangedand sideways-traded crypto assets.
At a news conference yesterday, Federal Reserve Chairman Jerome Powell told reporters that the fight to get inflation back to 2% had been difficult, but added that he believed it was “unlikely that the next key rate movement will be an increase”.
“I would say it’s unlikely,” he said, while warning that “it will probably take us longer to be sure that we are on a sustainable path to 2% inflation.”
But even President Joe Biden has been optimistic that the Fed will continue to cut rates this year. “I stand by my prediction that there will be a rate cut before the end of the year,” he said at a news conference in Japan last month. “That might delay it by about a month, I’m not sure.”
He was referring to the March inflation report hotter than expected which had just been released at the time.
Stay up to date with crypto news, receive daily updates in your inbox.
Fuente
