Crypto Markets on Stimulus Money Decision

Crypto markets on stimulus money decision. Bitcoin, the most valuable cryptocurrency in terms of market capitalization. Surged past $49,000 on Wednesday after officials at the Federal Reserve of the United States. Approved the acceleration of the central bank’s plan. To withdraw stimulus measures in response to the coronavirus outbreak.

Following the announcement, both cryptocurrency and traditional markets. Gained as the central bank’s action reduced investor uncertainty. And boosted investor confidence. The bankers at the Federal Reserve have indicated that they are prepared. To hike the short-term interest rate at least three times next year. In order to combat the current high inflation.

The whole cryptocurrency market was paying careful attention to the Fed’s decision. Because many believe that tightening monetary policy is often seen. To be bearish for risk assets, which includes crypto. In recent weeks, the value of bitcoin and other cryptocurrencies. Has plummeted as investors fretted about the Federal Reserve’s. Anticipated hawkish policy shift in the coming months. According to CoinDesk, the price increase following Wednesday’s news represented “a relief rally.”

The trading volume of bitcoin on large centralized exchanges was marginally higher. On Wednesday compared to the previous day, according to data. Which is from CoinMarketCap. The value of other major cryptocurrencies increased as well. After falling below $3,700 earlier this week. Ether surged above $4,000 on Thursday.

Technician’s take

Despite a short-term downturn, Bitcoin (BTC) has found support. At roughly $46,000 and is attempting to reverse the trend. But the upside appears to be confined to the $52,000 resistance level. Which corresponds to around the midpoint of the 20 percent sell-off. That occurred earlier this month in the stock market.

On the daily chart, the relative strength index (RSI) has reached its most oversold level since May 20. Which precedes a significant price recovery. After several weeks of low trade activity. Momentum is also beginning to regain its strength.

When looking at the weekly chart. The price environment appears to be less favorable. Because the uptrend appears to be decreasing. For the time being, this means that short-term buyers. Will have difficulty going over $50,000-$55,000.

CoinDesk TV

Please find the following links if you were unable to see any. Of the most recent episodes of “First Mover” on CoinDesk TV.

Stablecoins, according to Senator Elizabeth Warren, are a danger to consumers. And our economy as a whole. Decentralized autonomous organizations (DAOs) have evolved over time. While Matt Leising, co-founder of Decential, examines what the mainstream media. Gets wrong about cryptocurrencies and Crypto markets on stimulus.

A discussion on stablecoins took place yesterday in Washington, D.C., and the hosts of “First Mover” spoke with Nikhilesh De. (Managing Editor of CoinDesk Global Policy & Regulation) about the most important insights. From the Senate Banking Committee hearing on stablecoins. That took place that day. In an interview with DeCential, Matt Leising. Co-founder and co-author of “Out of the Ether,” shared his insights on the evolution and future of decentralized autonomous organizations (DAOs),. As well as what the mainstream media gets wrong about cryptocurrencies. Additionally, Edan Yago, co-founder of Sovryn, offered First Mover with insights. Into the cryptocurrency markets as well as updates. On the state of cryptocurrency in El Salvador.

Leave a Reply

3 × 3 =