Bitcoin, which was around $21,600 before the Fed’s 75 basis point rate hike on Wednesday, started to rise, especially after Fed Chairman Jerome Powell signaled a slowdown in interest rate hikes.
Bitcoin carried its rise to the weekend and reached $ 24,280 today. The daily rise was 2.4%. Thus, Bitcoin has gained 8.3 percent in the last 1 week.
Similarly, Ethereum, which has risen by 2.5 percent to 1,715 today, has earned its investors 12.3 percent in the last week in dollar terms. Binance Coin rose 3.2 percent in the last 24 hours, Cardano (ADA) 2.7 percent, Ripple 2.6 percent, Solana 4% and Dogecoin 5.7 percent.
$116 BILLION INCREASED
With the recent rises, the total market value of cryptocurrencies has reached 1 trillion 111 billion dollars. The value of cryptocurrencies has so far increased by $116 billion after the Fed decision and Powell’s statements.
In his statement after the rate hike, Fed Chairman Powell stated that interest rate hikes have slowed down at some point. So it didn’t point to the September meeting. However, analysts pointed out that even this statement was enough to increase risk appetite.
fell 49 percent in 2022
While central banks embraced the interest weapon in the face of increasing inflation in the world, this situation triggered the decline in cryptocurrencies throughout the year. As of July 30, in 2022, the Bitcoin investor lost 49.2 percent and Ethereum 54.6%.
2022 performance of popular cryptocurrencies in dollar terms:
|Cryptocurrency||2022 change (%)|
It is stated that especially since 2021, cryptocurrencies often follow a parallel course with stock markets, especially Nasdaq. The reason for this is the expansion of the investor base of cryptocurrencies and the increasing institutional interest in cryptocurrencies. On the other hand, many analysts say that enough data has not yet been collected to say that there is a definite correlation.
Still, it would not be wrong to say that there is a general trend agreement between the Nasdaq Composite Index and cryptocurrencies in 2022. The index has lost 21.7 percent so far.
Analysts again predict that the Fed’s interest rate decisions and statements will have the same effect on both cryptocurrencies and stock markets.
The next meeting of the Fed Open Market Committee is in September. As Habertürk columnist Abdurrahman Yıldırım stated in his summer of 28 July, the data on the US economy will be followed closely by investors, especially until September, when the Fed says “come in September” by “stealing a finger of honey in the mouth of the markets”. In addition to inflation, labor data, consumer spending and growth figures will be extremely influential in Fed decisions.