Bitcoin Holds $26K Amid Fed Rate Hike Fears
By Laxmikant Khanvilkar
Leading virtual digital assets (VDAs) were stuck in narrow ranges with Bitcoin managing to hold the crucial $26,000 mark as fears of Federal Reserve interest rate hike for longer period applied pressure on risky assets.
Bitcoin (BTC), the world’s most valuable cryptocurrency, was recently seen changing hands at $26,223.96, down 0.16% over the past 24 hours. Ethereum (ETH), the second largest crypto in market value, was quoting 0.29% higher at $1,593.47.
The idea of higher rates for a longer period drove investors to bonds. As such, the U.S. 10-year Treasury yield moved up to 4.55%, matching its highest level in about 16 years.
Analysts have earlier said that little or no major macro updates this week should keep crypto fairly supported. Also, the zero correlation between BTC/USD can help maintain stability. Recently, the BTC’s correlation with the Dollar Index (DXY) hit zero, meaning there’s no relationship at all between them.
The global crypto market cap eased 0.11% to $1.05 tn, over the last 24-hours. Simultaneously, the total crypto market volume decreased 3.02% to $22.89 bn. The total volume in DeFi is currently $2.21 bn and all stablecoins $22.06 bn, representing 9.66% and 96.35% respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance eased 0.05% to 48.88%.
IC15 index, the barometer of top fifteen tokens, edged down 0.11% to 33.917.99.
Meanwhile, a bipartisan group of the U.S. lawmakers argued Tuesday in a letter to SEC Chair Gary Gensler the markets regulator should listen to the courts and give up efforts to block bitcoin exchange traded funds (ETFs) from regulatory approval. Hopes of spot-bitcoin ETFs being launched sooner or later should keep cryptocurrencies supported.
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