FED's Interest Rate Hike Sparks Crypto Rally: Traders 'Buy the News, Sell the Rumor

in bitcoin •  2 years ago 

Hey there, it’s time for your daily dose of cryptocurrency news! Today, the global market cap has risen to an impressive $1.20 trillion.

Let’s dive into the specifics: Bitcoin (BTC) has managed to climb above the $29,000 mark early Thursday, following a 25-bps interest rate hike by the US Federal Reserve. Ethereum (ETH) has also managed to climb above the $1,900 mark as well. Other popular altcoins like Dogecoin (DOGE), Ripple (XRP), Litecoin (LTC), and Solana (SOL) are all in the green, making for a positive day in the crypto world.

It’s worth mentioning that WOO Network (WOO) has emerged as the biggest gainer of the day, with a 24-hour gain of over 10 percent.

Overall, it’s exciting to see the crypto market continuing to thrive. At the time of writing, the global crypto market cap stands at $1.20 trillion, registering a 24-hour gain of 1.51 percent. Stay tuned for more updates on the ever-changing world of cryptocurrency !

Latest News

Crypto Prices Skyrocket After FED’s Latest Move: Buy the News, Sell the Rumor Trend Continues — Sentiment Reports

The recent decision by the US Federal Reserve to increase interest rates by 25 basis points caused a positive reaction in the cryptocurrency market. Within three hours of the announcement, Bitcoin's price rose above $29.2k, indicating a buy-the-news sentiment. This move also suggests a potential weakening correlation between the crypto market and the traditional finance industry. The interest rate hike had little effect on the crypto market, but an increase in trading volumes and address activity indicate a rally related to the official announcement.

SEC Backs Down: New Hedge Fund Rules Won’t Define Digital Assets — What This Means for Crypto Investors

The US Securities and Exchange Commission (SEC) has delayed defining the term "digital assets" in hedge and private equity fund rules. The proposed definition included terms such as "virtual currencies," "coins," and "tokens." The SEC has recently published amendments to Form PF, but they did not include the proposed digital assets definition. The proposed definition aimed to obtain more accurate reporting on digital assets and better understand funds' overall market exposures. The latest updates to the Form PF rules require SEC-registered funds to report key events that could indicate systemic risk or harm to investors, as well as details of their fees and expenses.

Coinbase puts the brakes on new loans via Coinbase Borrow

Coinbase Borrow, a program that allowed customers to borrow fiat loans against their bitcoin holdings, will stop issuing new loans from May 10, 2023. Customers who used the program received an email from Coinbase informing them of the decision. The closure of Coinbase Borrow seems to be unconnected to any enforcement action by regulators, and a spokesperson for Coinbase attributed the decision to reduced demand. The program allowed customers to get fiat loans quickly without selling bitcoin and incurring taxable gains or losses.

Bullish or Bearish? Bitcoin Price Prediction Hangs on US Interest Rate Decision — Is the Crypto Market Finally Out of the Woods?

The highly volatile digital currency Bitcoin has been stuck in a bearish trend, leaving investors questioning whether this downturn will persist or if a bullish reversal is on the horizon. The United States Federal Reserve has raised interest rates to their highest level in 16 years in an effort to combat inflation. This development has slowed down industries like the housing market and contributed to the recent failure of three American banks. Bitcoin's price currently faces considerable resistance near the $29,295 mark, with indicators suggesting a possible downtrend for Bitcoin's price today. The cryptocurrency may encounter immediate support close to the $27,600 level.

Bitcoin Adoption Skyrockets as Fiat Currencies Lose Trust — Michael Saylor

According to Michael Saylor, two dynamics are driving widespread adoption of Bitcoin: concerns about inflation and recent banking crises that have undermined investor confidence in the banking system. There are macroeconomic concerns about inflation, causing people to lose confidence in fiat currencies and realize that everything denominated in cash flow is a currency derivative, whereas Bitcoin is not. Recent banking crises, such as the collapse of several banks, have further undermined investor confidence in the banking system. Saylor expressed confidence in Bitcoin's potential and stated that MicroStrategy will continue to accumulate more digital assets, despite suffering large paper losses on its roughly 140,000 BTC portfolio.

That’s a wrap for today’s crypto scoop! Stay tuned for more electrifying updates in the world of cryptocurrencies.

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