This week’s trading in cryptocurrency markets has remained sideways as Bitcoin and Ethereum have retained their ground. Despite a rise in trade volume over the last 24 hours, Bitcoin and Ethereum remain in the $20k and $1,500 range, respectively, just like yesterday. Let’s examine the recent cryptocurrency news that has an impact on prices.
Summary:
- While trading volume has increased dramatically, Bitcoin and Ethereum are still above the support level.
- During their most recent meeting, the Federal Reserve decided to increase rates by another 0.75% later this month, which might give markets further negative momentum.
- As investors swarm to cryptocurrencies as a haven against inflation, cryptocurrency markets are beginning to depeg from traditional stocks.
- Bitcoin and Ethereum will probably test support in the coming days before deciding what to do next.
Crypto Market News
After a Federal Reserve meeting on November 2nd, Bitcoin prices are down a little today, even though they are still over the $20k range. The Federal Reserve authorized a further increase of 0.75 points, according to the official FOMC statement. The official statement reads:
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 3-3/4 to 4 percent.”
On October 26th, 2022, the applicable Federal funds rate is 3.08%. Since the present rates are roughly 1% below the objective, a large interest rate increase may occur before the end of the year.
Stocks underperformed on Wednesday due to the FED’s higher objective, with the NASDAQ closing down 2.61%, the S&P 500 down 2.5%, and the Dow Jones down 1.55%.
Despite the generally negative stock market headlines, Bitcoin and Ethereum trading volumes significantly increased as the crypto markets moved sideways. The daily trading volume of BTCUSD is up 43%, while ETHUSD is up 72%.
The rise in trading volume is probably the result of more traders turning to the cryptocurrency markets as a possible inflation and global economic hedge. Over the past year, Bitcoin has traded side by side with stocks, but cryptocurrencies are beginning to depeg from conventional markets.
The extreme fear level for last month was 20 points, while today’s crypto fear and greed index is at a comparatively high 30 points, still indicating fear.
The price of bitcoin is currently $20,353, down 2% from the previous week, while the price of Ethereum has increased by 0.06% and is still trading above $1,500. Until next week, when the market gets ready for its next move, sideways trading for Bitcoin and Ethereum will likely continue.
Remember this in light of the recent Fed interest rate announcement, before the end of the week, Bitcoin and Ether may test support once more.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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