The Blossom Of Crypto Market, Investors Respond Positively To The Minutes Of The Fed. Crypto investors seem to have responded positively to the minutes of the Federal Open Market Committee last month. The minutes, released Wednesday, July 6, 2022 local time, eased at least some concerns about the US central bank’s commitment to tighten monetary policy.
Bitcoin was recently trading at around USD 21,600, up more than 6 percent over the past 24 hours and outpacing all major altcoins at one point.
Since slumping below $18,500 last Thursday, the biggest cryptocurrency has gained more than 16 percent, amid what many analysts see as just a temporary respite in investor anxiety.
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The head of sales of Japanese crypto exchange BitFlyer, Takaaki Koto said the recent recovery in crypto was not instant.
Koto sees today’s rocky environment as a possible opportunity for the industry.
The Blossom Of Crypto Market, Investors Respond Positively To The Minutes Of The Fed. “Many issues are being addressed, whether it should be cutting costs or just increasing risk awareness, risk management, or simply trying to increase trust in the system, either through regulation or stability,” Koto said as quoted by CoinDesk, Friday (8/7/2022) .
“These things do take time. But crypto things happen (at a) fast forward speed. It might happen more quickly,” he continued.
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US stocks rose for the fourth day in a row and so did cryptocurrencies which have been increasingly correlated over the past year with major equity indexes.
The gains have come amid the now relentless Federal Reserve (the Fed) in its quest to tame inflation. Fed Chair Jerome Powell has suggested a more consistent rate hike with aggressive 50 and 75 basis point hikes from spring could be imminent.
“Participants agreed the economic outlook warrants a move to a restrictive policy stance, and they acknowledged the possibility that a tighter stance could be appropriate if high inflationary pressures persist,” the FOMC minutes said.
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Crypto good and bad news
Meanwhile, the crypto industry is grappling with a mix of good and bad news. The price of Ether appears to be benefiting from optimism about the upcoming Ethereum Merger which will see the protocol switch from a proof-of-work to a proof-of-stake protocol.
The TON Foundation created a new USD 90 million ecosystem fund, continuing recent efforts to bring back the blockchain project that Telegram founded.
The Blossom Of Crypto Market, Investors Respond Positively To The Minutes Of The Fed. Bitcoin miner Compass, on the other hand, announced on Wednesday that it had laid off 15 percent of its employees, and cut executive salaries to cope with the cryptocurrency’s decline.
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Compass is the latest in a string of companies operating within the broader crypto industry to cut their workforce.
Previously, the movement of the crypto asset market in the middle of the first week of July 2022, looked cheerful because there was a slight rally that caused price increases. Since the beginning of the week, the crypto market has struggled not to fall further amid strengthening recession signals.
Launching the Coinmarketcap site on Thursday afternoon, July 7, 2022, the 10 crypto assets with the largest market cap or big caps have successfully advanced into the green zone in the last 24 hours. The value of Bitcoin (BTC) soared 1.08 percent to the level of USD 20,505 or around Rp. 307.6 million (assuming an exchange rate of Rp. 15,005 per US dollar) per chip in the last day.
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Regarding the movement of the crypto and bitcoin markets in the first week of July 2022, Country Manager, Luno Indonesia, Jay Jayawijayaningtiyas said, Bitcoin prices fell 56 percent at the end of the second quarter of this year which was probably due to the uncertain macroeconomic outlook and conditions in the crypto market.
“However, Bitcoin turned things around again entering July 2022 by growing by 0.5 percent this month,” Jay said in a written statement, Thursday, July 7, 2022.
Jay added, Altcoins are also off to a positive start with a recovery that is superior to Bitcoin in the 4.9 percent range.
“Medium Capitalization Index posted the best performance in July at around 5 percent, followed by the Large Capitalization Index at 3.1 percent,” said Jay.
As for Jay revealed, the top three coins by market cap have been in a tight competition over the past week, with BNB managing to slightly outperform Bitcoin and Ethereum.
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Previously, the movement of the crypto market since early July 2022, was not quite satisfactory. Over the weekend, a number of large cap crypto assets were still moving below their resistance levels. Although it had strengthened, overall cryptocurrencies were still in the price range they had occupied for a long time.
For example, even though Bitcoin has strengthened, its price is still stuck in the range of USD 20,000 or around Rp. 299.5 million. Despite the high gains, so far Bitcoin can only touch USD 21,000.
Tokocrypto trader Afid Sugiono explained that the future movement of cryptocurrencies based on on-chain data analysis and the technical side, crypto assets still have the potential to weaken quite deeply, even though the current price level of crypto assets is sideways or flat.
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“Crypto market movements actually follow the general sentiment of investors who are avoiding risk, as reflected by the weakness in the US stock market,” Afid said to Liputan6.com, Tuesday, July 5, 2022.
The Blossom Of Crypto Market, Investors Respond Positively To The Minutes Of The Fed. Until now, investors believe the US economy will soon enter the brink of recession. They are also afraid that US economic growth will fall further considering that the US central bank, The Fed, has repeatedly emphasized its steadfastness in raising its benchmark interest rate to curb inflation.
“From a technical point of view, Bitcoin currently has the closest support at the level of USD 17,700 with the closest resistance at USD 21,051. However, it looks like this week investors are still insisting on keeping the price of BTC not falling below USD 19,000,” said Afid.
However, according to Afid, if you look at trading volume this week, it looks like it’s still dropping quite deep, so the potential for BTC to continue weakening and test its strong support level at USD 15,500 in the long term is even greater.
