Bitcoin, Ether Rebound On Fed Rate Pause Hope
By Laxmikant Khanvilkar
Leading cryptocurrencies have rebounded in the last 24 hours as markets believe that the U.S. Federal Reserve will like take a turn from usual hawkish outlook and may even forecast a rate cut this year. The expectations boosted prospects of equities and crypto, enabling these risky assets to continue their rally.
Bitcoin scaled $28,600 level while Ethereum was within the striking distance of $1,800 mark. Bitcoin was last trading at $28,100 level while Ethereum quoted at $1,770.
Meanwhile, the U.S. Federal Reserve’s Federal Open Market Committee (FOMC) started its two-day monetary policy meeting. The CME FedWatch Tool shows currently that over 87% of traders are predicting a 25 basis point (bps) rate hike on Wednesday, which would set the federal funds target rate range to between 4.75% and 5%.
BTC’s brief midday jump had the BTC/U.S. dollar trading pair reaching as high as $28,605 on crypto exchange Coinbase – its highest point since June.
The global crypto market cap is at $1.18 tn, having increased by 1.99% in the last 24 hours. Total crypto market volume for the same time period was $67.45 bn, representing a decrease of 12.09%. DeFi accounts for 7.73% of the total market volume with $5.22 bn and stablecoins hold a 91.49% share of the total market volume with $61.72 bn. Bitcoin’s dominance has dropped by 0.49% over the day and is currently at 46.02%.
Risk appetite is rallying on optimism the Fed is almost done with tightening and that they will help prevent financial stability concerns from getting out of hand, an analyst with forex consultancy firm wrote in a note.
Bitcoin has surged more than 15% over the past seven days and 69% so far this year. A global brokerage firm report noted that on a risk-adjusted basis, BTC outdid a range of securities, indices and commodity assets and is 2023’s best-performing asset.
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