Bitcoin and ether was trading higher at press time Wednesday night, as the global cryptocurrency market cap rose 4% to $974.2 billion.
|coin||24 hours||7 days||Price|
|cryptocurrency||24-hour % change (+/-)||Price|
|Basic attention sign (BAT)||+25%||$0.36|
See also: Best USDC Interest Rates
Why it matters: Cryptocurrencies were relatively muted compared to other risky assets on a day in the US federal reserve the sharpest rate hike in 28 years.
The Fed hiked the Federal Reserve rate by 0.75% to between 1.5% and 1.75% on Wednesday, noting that inflation remained high.
The US Federal Reserve released new “dot-plot” economic forecasts that show all 18 of its members expect interest rates to hit 3% by the end of 2022.
The S&P 500 and Nasdaq closed up 1.5% and 2.5%, respectively, on Wednesday. At press time, the S&P 500 and Nasdaq futures are up 0.7% and 0.8%, respectively.
The Federal Reserve has signaled more rate hikes are on the way, but rate cuts are coming in 2024, it said Edward MoyaSenior Market Analyst at OANDA.
“The dot charts show they expect a further 175 basis points of tightening for the rest of the year, with a few more rate hikes in 2023 before rate cuts are warranted in 2024,” Moya wrote in a note seen by Benzinga.
Moya’s colleague Craig Erlam said Bitcoin’s trading environment has seen a change and its $20,000 support level appears “very unstable.”
“Risk appetite has been wiped out and the days of ultra-low interest rates are behind us. There’s not the same speculative sentiment as there was when Bitcoin exploded higher.”
Erlam said, “There may still be belief that Bitcoin can thrive in the future, but something that now offers little beyond speculative rallies will continue to struggle.”
Bitcoin is down almost 25% in the past seven days and the volatility has caught the attention of traders, according to Bitcoin Trader mood.
The market intelligence platform said the 4.5-year high in Bitcoin’s daily token circulation metric is an indication of trader polarization. Santiment said that 497,000 unique BTC were moved earlier in the week, the highest since December 6, 2017.
Traders are certainly reacting to this week’s big price declines and 4.5 year high #BitcoinThe daily token circulation of shows how polarized we are. 497k unique $BTC were moved to the start of the week, the highest amount since December 6, 2017. https://t.co/Bi9aoE92H4 pic.twitter.com/7MuvMPrXUd
— Santiment (@santimentfeed) June 15, 2022
Alternative.me’s Crypto Fear & Greed Index flashed “Extreme Fear” with a score of 7 at press time. A score of 0 on the index means “extreme fear” and 100 represents “extreme greed.” The index now reflects the lowest values over a one-year period.
“Crypto Fear & Greed Index” by Alternative.Me over a year
Despite the entrenched bear market, cryptocurrency traders Michael van de Poppe says he is long Bitcoin, Ethereum, avalanche (AVX), fantom (FTM) and polygon (MATIC).
— Michaël van de Poppe (@CryptoMichNL) June 15, 2022
co-dealer, Justin Bennett tweeted that if Ethereum reclaims the $1,230 level by 20:00 EST, we could see relief to $1,420 and possibly $1,700. Around 9 p.m. EST, the second largest coin was trading at $1,230.09.
if $ETH By today’s close at 8pm EST we can reclaim $1,230, we should see some relief back to $1,420, possibly $1,700.
— Justin Bennett (@JustinBennettFX) June 15, 2022
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