BTC Stays Below $27K; Dovish Fed Comments Weigh
By Laxmikant Khanvilkar
Last Friday, the Federal Reserve Chairman Jerome Powell hinted at the need to slow the pace of interest rate hike. This has aided bears to raise bets on virtual digital assets or VDA.
As a result, leading cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) are continuing their downward drift.
BTC, the largest cryptocurrency by market capitalization was recently trading at around $26,680 level, down 2%.
ETH, the second-largest cryptocurrency by market capitalization, was hovering around $1,800.
“The financial stability tools helped to calm conditions in the banking sector,” said Powell. “Developments there, on the other hand, are contributing to tighter credit conditions and are likely to weigh on economic growth, hiring and inflation,” he continued. “As a result, our policy rate may not need to rise as much as it would have otherwise to achieve our goals.”
Dovish talks have caused a slide in price as well as allowed bears to push the prices lower.
However, the struggle for the U.S. debt ceiling is likely to cushion the fall in BTC prices, analysts said.
The global crypto market cap decreased further 1.08% to $1.12 tn, over the last 24-hours. The total crypto market volume increased 15.49% during the period to $19.67 bn. The total volume in DeFi is currently $1.47 bn, or 7.46% of the total crypto market volume. The volume of all stablecoins stands at $17.71 bn, which is 89.99% of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 46.35%, a decrease of 0.07% over the day.
IC15 index, the barometer of top fifteen tokens, slipped 1.12% to 37,199.
“The Fed Chair appears content with signaling patience with regards to future tightening,” Edward Moya, senior market analyst at foreign exchange market maker Oanda, wrote in a Friday note.
Meanwhile, Tornado Cash’s TORN token has begun to recover after the protocol’s DAO was the victim of vote fraud over the weekend. This attack – which was not an exploit or hack – involved an attacker putting forward a proposal that looked benign on the surface but allowed the attacker access to all governance votes via some hidden malicious code.
As a result, the protocol’s TORN token dropped 40% to $3.59 from $5.76, but is now recovering and up to $4.66.
The Tornado Cash community is proposing solutions to revert the unauthorized code changes and considering creating a new contract with airdropped tokens for existing holders.
In other news, BTC payment App Strike has expanded to 65 countries while Sotheby’s auction of rare NFT collections garnered $2.4MN.
You need to login in order to Like
