FED’s less aggressive price hike benefits cryptocurrency market.
One of the major reasons for cryptocurrency market to fall down, was the price hike by Federal of US in response to inflation. The probability of recession in the country, the inflated price in the economy and Russia-Ukraine war all contribute their part in bringing the cryptocurrency market down.
Last week, the FED announced hike rates. To everyone’s surprise the rates were not as aggressive as it was planned. This news surely came in as a ray of hope, as the prices of cryptocurrencies slowly started picking up.
Bitcoin reached its peak since June’s plummet at $24,047. Ethereum also saw its price getting surged due to the news. The observation is justifiable when we connect the dots between FED’s actions and cryptocurrencies market and say that cryptocurrency is speculatively controlled by FED.
Ethereum being the second largest capitalized cryptocurrency, experienced a 5% raise in the price since the past 24 hours. It would be fair to assume that Ethereum surely started gaining some momentum on the break out of the news.
Ethereum’s Surge!
Ethereum which was trading at low prices for the entire month of June and in the starting week of July, saw a surge in its price breaching the $1500 range. The cryptocurrency was observed to be trading at $1609.06.
Since the news came about FED’s lenient policy, the cryptocurrency whales have also started acting in a more optimistic way. It is observed that Ethereum Whales are on the look out for buying a lot of tokens amidst the price raise.
Anonymous whale buys 1.7 billion of Ethereum Derivatives.
According to the CEO of cryptocurrency analytics resource CryptoQuant- Ki Young Ju, an anonymous crypto whale went on to buy $1.7 billion worth of ETH futures contracts in the span of an hour.
ETH whale occurences owning between 1K and 100K ETH, are growing in the spot markets, according to recent research by CryptoPotato. After hitting bottom in May, they have seen a strong increase in the most recent few weeks.
Writer’s Analysis:
The market implosion did drain out the life from the investors, especially of those who held bitcoin and Ethereum. But, since the revelation of policy, the trend of surging price of cryptocurrencies has surely brought a light into the market. Though it is said that this just a relief rally and the crypto winter is far from the end, it is good to see the market holding up the turbulence and having a comeback after a span of two months.