Bitcoin Wobbles; Fed In “Risk Management Mode”
By Laxmikant Khanvilkar
Virtual digital assets (VDA) made a little progress in the past 24-hours with investors still busy summarising influence of recent macro economic events outcome and the Federal Reserve officials indicating at continuation of efforts to control inflation, the implications on risky assets remains significant.
The Fed holding its guard up, in an effort to strengthen its economic recovery efforts, and Fed Chairman Jerome Powell admitting to being in “risk management mode” suggests that the central bank is unlikely to dial back the policy rate too soon.
Cryptocurrencies such as Bitcoin (BTC), often viewed as hedge against inflation, tend to move lower in rising interest rate scenario.
The largest cryptocurrency maintained soft tone while languishing in sub-$43,000 level. It was recently trading 1.4% lower at $42,357.
Other large tokens, altcoins experienced similar fate.
Ethereum (ETH), the second largest cryptocurrency, has slid below $2,300. It recently traded at $2,276 losing 1%.
Other major cryptocurrencies such as Solana’s SOL, Ripple’s XRP, Cardano’s ADA, Avalanche’s AVAX observed soft tone while Binance BNB was in defiant mode.
The global crypto market cap decreased 0.6% to $1.63 trillion in the last 24 hours. On the other hand, the total crypto market volume rose 12.5% to $33.1 billion. Total volume in DeFi is currently $3.8 billion, and all stablecoins are $28.1 billion, representing 11.4% and 84.7%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 51.1%, down 0.10% over the day.
The IC15 index, the barometer of the top fifteen tokens, declined 0.9% to 54,377.
Meanwhile, El Salvador’s bitcoin-friendly president Nayib Bukele is on his way to another five-year term, according to exit polls which show him with an overwhelming lead shortly after voting ended on Sunday evening.
Another interesting update is from the spot bitcoin exchange-traded funds (ETFs) provider – Valkyrie. It has added BitGo as a second custodian for its Bitcoin Fund (BRRR).
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