The Fed’s Announcement Excites Investors To Enter The Crypto Market. The movement of the crypto market this morning was very encouraging. After carrying out a wait-and-see action since the beginning of the week to make a number of cryptocurrencies decrease in value, investors now look confident in making accumulations.
Tokocrypto trader Afid Sugiono explained that investors were getting excited to enter the market after hearing the results of the US central bank’s Federal Open Market Committee (FOMC) meeting, the Fed Thursday (28/7/2022) early this morning. During the meeting, the Fed kept its promise to raise the benchmark interest rate by 75 basis points.
Read Also: Russian Mass Media Watchdog Blocks Crypto News Sites, What’s Up?
“In addition, there is something that seems to make investors calm, namely the attitude of the Fed Chair, Jerome Powell, who said it was likely to raise interest rates again in September,” Afid said to Liputan6.com, Thursday, July 28, 2022.
The Fed’s Announcement Excites Investors To Enter The Crypto Market. However, after the following month, there are signals that the Fed may slow down the pace of rate hikes to evaluate the impact of its monetary policy on inflation and US economic growth.
According to Afid, the high accumulation of action in the crypto market was also driven by the performance sentiment of the US stock market index, after the value of the shares of technology giants, such as Microsoft and Alphabet posted high growth.
Read Also: Tesla Revealed They Still Hold Bitcoin Worth USD 222 Million In Market
“Crypto investors often use the US stock index, especially technology stocks, as a benchmark for accumulation,” said Afid.
Moreover, now the correlation of crypto asset price movements, especially Bitcoin with the US stock index, is already at a score of 0.8 out of 1 or close to the perfect parity level. Meanwhile, with the performance of the US dollar index and cryptocurrencies, the opposite is true.
The Fed’s Announcement Excites Investors To Enter The Crypto Market. Another positive crypto news came from the Ethereum network, which finally released a shadow fork ahead of an update on its test network called Goerli. This project brings it one step closer before Ethereum actually performs The Merge’s main network update in September.
The news made the price of ETH able to beat the performance of Bitcoin in the last day. It is possible that the price of ETH could continue to penetrate its resistance level with an increase target of USD 1,697 or around Rp. 25.3 million.
Read Also: Why Investors Begin Withdrawing From Crypto Markets Ahead Of Fed Meeting
Afid said, investors are more confident in Bitcoin accumulation. The Fear & Greed Index Bitcoin this morning rose from 28 to 32, although it is still at the “Fear” level.
“The price of BTC is now targeted to rise to its resistance level near USD 23,500. The next major resistance could be USD 24,000, above which the price could start a new advance,” said Afid
Meanwhile, the rise in crypto prices is likely to last for the next few days. Even so, in general the crypto market is still sideways, not yet a significant bull run.
“So far there has been no negative sentiment that can hit the market. The thing to watch out for is that later there will be many traders or even whales who start to accumulate profits or profit taking, so that there will be more selling and making crypto prices go down a bit,” he said.
Read Also: FBI Warns Of Fake Crypto Applications That Lose USD 42.7 Million Investors
Previously, the price of Bitcoin and other top cryptocurrencies was observed to experience uniform movements on trading Thursday, July 28, 2022. The majority of cryptocurrencies managed to strengthen after the Fed meeting last night which announced a 75 basis point increase in interest rates.
Based on data from Coinmarketcap, Thursday (28/7/2022) morning, the crypto with the largest market capitalization, Bitcoin (BTC) rose 7.93 percent, but still weakened slightly 3.21 percent a week.
Currently, the bitcoin price is at the level of USD 22,790 per coin or equivalent to IDR 340 million (assuming an exchange rate of IDR 14,920 per US dollar).
Ethereum (ETH) also rose this morning. Over the past 24 hours, ETH rose 15.96 percent and 5.24 percent in the week. That way, ETH is currently at USD 1,626 per coin.
Read Also: The Dutch Central Bank (DNB) Fines Binance 3.3 Million Euros Because Not Registered
The next cryptocurrency, Binance coin (BNB) also strengthened. In the last 24 hours BNB was up 9.58 percent and 3.03 percent for the week, respectively. This makes BNB priced at USD 270.02 per coin.
Then Cardano (ADA) skyrocketed again after having weakened yesterday. In the last one day ADA skyrocketed 9.61 percent and 1.63 percent a week. Thus, ADA is at USD 0.5082 per coin.
Meanwhile, Solana (SOL) is following in the footsteps of other green cryptocurrencies. Throughout the last one day SOL flew 10.24 percent, but still weakened 8.47 percent for the week. Currently, the price of SOL is at the level of USD 39.53 per coin.
The Fed’s Announcement Excites Investors To Enter The Crypto Market. XRP also experienced strengthening this morning. XRP is up 7.11 percent in the last 24 hours, but is still down slightly at 2.08 percent for the week. That way, XRP is now priced at USD 0.3579 per coin.
Read Also: More About Crypto ACH Coin Belongs To Alchemy Pay Payment Platform
StablecoinTether (USDT) and USD coin (USDC), on the day of the compact strengthened 0.02 percent. This makes the price of both are at the level of USD 1.00.
Meanwhile, Binance USD (BUSD) has weakened slightly by 0.04 percent in the last 24 hours, but the price is still at the level of USD 1.00.
As for the overall crypto market capitalization in the last 24 hours, it still stands at USD 1 billion.
