Major coins traded in negative territory late Wednesday, with the global cryptocurrency market capitalization down 1.8% to $999.6 billion as of 9:31 p.m. EDT.
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why is it important: Bitcoin, Ethereumand Dogecoin all were trading lower after the Federal Reserve’s latest rate hike sent risky assets, including stocks, plummeting.
The tech-heavy Nasdaq closed down 3.4% during the day, while the S&P 500 ended Wednesday’s session down 2.5%. As of this writing, US stock futures were flat.
Wednesday, the 12 Federal Free Market Committee Members voted to raise the target federal funds rate from 0.75% to a range between 3.75% and 4%. It was the fourth rate hike in a row as part of the US Federal Reserve’s fight against inflation.
Edouard Moyaa senior market analyst at OANDA, noted the dovish part of the Fed’s statement, where the central bank said it would take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects activity economy and inflation, and financial developments.
“Bitcoin continues to trade above the $20,000 level as the Fed confirmed what markets were hoping for; A slowdown in the tightening is expected. The Fed’s initial reaction was quite strong for most risky assets, but it was not sustained as the central bank will remain dependent, with the next round of inflation data,” Moya said, in a statement. note seen by Benzinga.
“Inflation has been high for 18 months and the Fed will remain committed to using its tools, which means we won’t get a green light on risky assets until inflation comes down.”
Justin Bennett noted that the dollar index still has “bull flag potential” and is likely to close above the 111.80 mark.
“Those who want an extended rally of [crypto] need the DXY below that 111.50-111.80 area in the next few days,” the trader said.
So far the $DXY the potential for the bull flag still exists, and it should close above the 111.80 area.
Those who want an extended rally of #crypto need the DXY below this 111.50-111.80 area in the next few days.
113.60 is in play until then. https://t.co/I2WhYnekqW pic.twitter.com/q4iWgR4kld
— Justin Bennett (@JustinBennettFX) November 2, 2022
Dogecoin, which surged last week after Elon MuskThe Twitter takeover was seen cooling off on Wednesday night.
The 24-hour trading volume of the meme coin fell 41.3% to $4.6 billion, according to data from CoinMarketCap. At the time of writing, 24-hour data from Coinglass indicated that $23.8 million of DOGE had been liquidated.
Serhi ZhdanovCEO of cryptocurrency trading platform EXMOsaid in a note that for nearly three and a half days, when DOGE traded between 6 and 9 cents, it accounted for 20% of the exchange’s weekly trading volume.
Distribution of DOGE/USD volumes between October 26 and November 1 – Courtesy of EXMO
“A sharp price spike occurred on October 29: DOGE rose more than 50% in 8 hours. This is the main reason why there was relatively little trading volume between $0.09 and $0.12. The excitement in the market started with a rise above $0.12,” Zhdanov said.
In the second half of the week, trading was mainly between 12 and 15 cents and this period accounted for 57% of the weekly trading volume.
market intelligence platform, Sanimentnoted that Litecoin (LTC) is “currently on a roll” and decoupled from the cryptocurrency pack.
“We saw that the number of addresses with 1,000 or more [LTC] has increased rapidly since mid-June, and [LTC’s] price vs. [BTC] increased by +51% since June 12.
#Litecoin is currently on a good streak, and is momentarily decoupled from the #crypto pack. We have seen that the number of addresses of 1,000 or more $SLD has increased rapidly since mid-June, and $SLDprice vs. $BTC increased by +51% since June 12. https://t.co/uFXYNcnsRP pic.twitter.com/PASMdaezCD
— Santiment (@santimentfeed) November 3, 2022
Santiment noted that 314 new LTC addresses for sharks and whales have been created since May 27. At the time of writing, LTC was trading 16% higher at $63.80. For the week, the coin gained 12.9%. It should be noted that LTC and DOGE can be operated together.
Read more : What the Fed’s Latest Interest Rate Hike Means for the Crypto World