The Cryptocurrency market didn’t believe in raising the key rate by 100 basis points and turned out to be right. The positive outcome of the Fed meeting allowed Bitcoin to form a confident bullish candlestick and a bullish engulfing pattern. Over the past day, the asset has risen in price by 9%, and it is trading above $23 000. Cryptocurrency continues to remain bullish and is gradually approaching the key resistance level of around $24 000.
Positive sentiment in the Cryptocurrency market and an 8% increase in total capitalization became possible after the Fed meeting. The agency raised the key rate by 75 basis points to 2.25%-2.5%. The Fed said it would do everything possible to bring inflation back to 2%, and therefore continue to reduce the balance sheet, as announced in May. It means a monthly liquidity withdrawal of $90-$95 billion. The head of the department, Jerome Powell, said that another rate increase is possible in the future, but this will depend on the dynamics of indicators.
Cryptocurrency and other markets have adapted to the new reality and the aggressive policy of the Fed. Traders predicted a key rate hike of 75 basis points. Therefore, the next stage of tightening monetary policy has already been included in the price, and the markets reacted with growth. Some predicted a 100 basis point hike in the key rate. In such a case, the market would have reacted in proportion to the capitulation in mid-June, since such an event would have been unforeseen. However, the forecast of the markets came true, and therefore most of the indices reacted with growth.
The upward pace of Ethereum is gaining momentum, thanks to which the quotes of the altcoin broke through the important level of $1 600. The main stage of growth occurred on the last day when the coin went up by 12.5%. At the same time, trading volumes continue to recover and amount to $25 billion. The main catalyst for the growth of ETH quotes was the long-awaited transition to the PoS algorithm.
Ethereum reached an important indicator, but to continue the upward movement, the altcoin needs the support of Bitcoin, which resumed its upward movement. A bullish breakout of Bitcoin at $24 400 will allow Ethereum and the Cryptocurrency market to realize the next stage of the upward movement. The level of Bitcoin dominance in the market remains high, around 42.5%. That is why the main stage of the growth of the Cryptocurrency market fell on the results of the Fed meeting and the positive reaction of Bitcoin to it.
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