Bitcoin and Ethereum: Crypto Markets Enjoy Post-Fed boost

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Bitcoin and Ethereum:- Bitcoin traders had a positive reaction to the latest policy announcement from the US Federal Reserve. Although the Fed increased interest rates by 25 basis points to 5.25%, their comments indicated a potential loosening of their grip on the economy, which is good news for higher-risk assets like bitcoin.

Federal Reserve Chair Jerome Powell said that the committee removed a sentence from the March statement that suggested additional policy firming might be necessary. This means that the tightening cycle is complete. Despite the clunky phrasing, Powell’s statement was good news for Bitcoin traders, and the world’s largest cryptocurrency experienced a surge in value.

Bitcoin’s price went up by 1.2% on Wednesday, closing just above US$29,000, where selling resistance was mostly located. In the Thursday morning trading session in Asia, there was a further increase of 0.2% in the value of BTC/USDT, bringing bitcoin closer to US$29,100.

When the Fed expresses dovish sentiments, it usually results in a decrease in the value of the US dollar, as international investors can earn a lower yield by keeping their funds in US money markets. On Wednesday, we observed the most significant drop in the US Dollar Index (DXY) in a month, which supported a rise in bitcoin’s value.

  • The number of long and short positions on bitcoin futures are nearly equal, which means there is no clear market sentiment towards the future price movement of bitcoin.
  • On Wednesday, both long and short liquidations were around US$20 million, indicating a lack of dominant market sentiment.
  • People who are optimistic about bitcoin’s future will want to see its price increase beyond US$30,000.
  • Those who are pessimistic about bitcoin’s future will find support from buyers if the price falls to US$28,500 or US$28,000, according to Binance’s order book.

On Wednesday, Ethereum (ETH) rose by 1.9% thanks to the weaker US dollar. This pushed the ETH/USDT pair above the important US$1,900 level. However, the pair has dipped slightly below US$1.9k today. There were no major changes among other popular altcoins.

Other major cryptocurrencies such as Ripple, Cardano, Polygon, Solana, and Dogecoin saw small gains in their market capitalizations thanks to the positive performance of Bitcoin and Ethereum. The total value of the cryptocurrency market increased by 1.3% to reach $1.3 trillion, while the total value locked in the DeFi space increased by 1.7% to over $49 billion. Overall, the crypto market sentiment seems to be balanced to bullish, as indicated by the Crypto Fear & Greed Index firmly in the green.

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