Bitcoin, Ethereum Gain, Dogecoin Lower After Fed Minutes: Analyst Says “Crypto’s Quiet Period Is About To End” – Bitcoin (BTC/USD), Ethereum (ETH/USD) ), Dogecoin (DOGE/USD)

Bitcoin and Ethereum were seen trading in the green on Wednesday evening as the global cryptocurrency market capitalization remained largely flat at $921.5 billion as of 9:16 p.m. EDT.

Price performance of major coins
Piece of money 24 hours 7 days Price
Bitcoin BTC/USD 0.4% -5.7% $19,149.87
Ethereum ETH/USD 1% -5.5% $1,297.55
Dogecoin DOGE/USD -0.8% -7.8% $0.06

Top 24 hour gainers (data via CoinMarketCap)
Cryptocurrency % change over 24 hours (+/-) Price
Huobi Token (excl. tax) +25.1% $7.41
Earth (MOON) +13.1% $2.77
Hedera (HBAR) +4.7% $0.06

See also: Best Crypto Debit Cards

Why is this important: The two largest coins were seen higher on an intraday basis on Wednesday evening even as the United States Federal Reserve September minutes indicated that interest rates could stay higher for longer.

A lot of Federal Free Market Committee participants indicated that once the policy rate has reached a sufficiently restrictive level, it would be “appropriate to maintain this level for a period of time until there is convincing evidence that inflation is on the to return to the 2% target”.

Meanwhile, U.S. producer prices rose more than expected in September, with the producer price index (PPI) rising 0.4% in September, according to the Bureau of Labor Statistics. Economists had forecast an increase of 0.2%.

Wednesday’s PPI data comes just a day ahead of key Consumer Price Index data. The PPI measures wholesale inflation, while the CPI is a barometer of consumer prices.

US stock futures were seen trading slightly higher as investors await CPI figures as well as weekly jobless claims data, which are also due on Thursday.

Michael van de Poppe said there was “massive volatility” at the PPI level, while tomorrow the “volatility will be higher”.

The trader warned his followers on Twitter: “Do not use high leverage in these events!”

Edouard Moyaa senior market analyst at OANDA said investors should expect a 75 basis point rise in the FOMC’s second decision in November.

“The Fed is giving us subtle dovish hints here and that’s good news for risky assets. Officials have seen the pace of the hike slow at some point and that could easily happen after November’s FOMC meeting.

Moya said on the centerpiece: “Bitcoin could break out after the inflation report as Wall Street will have a better idea if the Fed should maintain an aggressive tightening stance beyond the November FOMC meeting. inflation remains high, Bitcoin could be vulnerable to test last month’s lows just ahead of the $18,000 level.

Trader in cryptocurrency Justin Bennett said on Twitter that this “quiet time for [cryptocurrencies] is about to end.

“The longer a market runs, the more explosive the breakout. Be prepared.”

CryptoQuant CEO Ki Young Ju said institutional adoption of cryptocurrencies could happen “in a few years.”

“Crypto market cap divided by M1 shows crypto adoption in asset allocation. It looks like crypto is still in the retail adoption stage at the moment. ready to bring in new capital.

M1 refers to the mainly liquid money supply comprising currency, demand deposits and other liquid deposits, which include savings.

Meanwhile, on the Ethereum front, the second-largest cryptocurrency has turned deflationary as in the past four days a total of 11,200 ETH has been burned as users rush to mint XEN tokens – linked to a mysterious and recently launched project, said Digital Delphiin a note seen by Benzinga.

Daily net supply change and total supply for ETH since the merger – Courtesy of Delphi Digital

The XEN token was launched by the “Fair Crypto Foundation” with the project website stating that it was founded by Jack Levinan early Google engineer, according to Delphi Digital.

“Users spent a total of [4,100] ETH to interact with the XEN token contract. At some point since the token’s launch, the contract accounted for over 48% of the gas used on Ethereum,” the independent research firm said.

Delphi noted that since the successful merger in mid-September, ETH has remained inflationary. He said many are pointing to the deflation caused by XEN as evidence that a sustained increase in on-chain activity during the next bull market could lead to massive deflation in ETH.

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