Major cryptocurrencies traded higher on Wednesday evening as the global cryptocurrency market cap rose 2.05% to $822.6 billion at 7:40 p.m. ET.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 1.1% | 1.9% | $16,871.85 |
| Ethereum ETH/USD | 3.5% | 5.7% | $1,257 |
| Dogecoin DOGE/USD | 4.5% | 4.8% | $0.07 |
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| Ethereum Classic (ETC) | +20.7% | $19.24 |
| NEAR Protocol (NEAR) | +16.3% | $1.55 |
| Lido DAO (LDO) | +18% | $1.39 |
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Why It Matters: Cryptocurrencies like Bitcoin and Ethereum advanced on Wednesday even as other risk assets like stocks were subdued. U.S. stock futures were seen flat at the time of writing.
The S&P 500 and Nasdaq closed 0.75% and 0.7% higher, respectively, on Wednesday after minutes of the Federal Open Market Committee were released.
The U.S. Federal Reserve’s language on the economy was considerably bullish but the central bank said it will take whatever measures necessary to tame inflation but at the same time said it may continue to soften its tightening measures.
In December, the Federal Reserve raised interest rates by 0.5% after raising rates by 0.75% in four consecutive hikes over five months.
“Bitcoin is getting a minor boost today as risky assets rally as more signs emerge that inflation is coming down,” said Edward Moya, a senior market analyst with OANDA.
“Disinflation trends might be improving in Europe, but the US outlook is getting complicated by a strong labor market. Cryptocurrencies seem unfazed by all the warnings coming from all the banking regulators,” said Moya in a note, seen by Benzinga.
Investors will look ahead to Friday’s nonfarm payrolls data, unemployment rate, and hourly wages — all of which could have a bearing on the Federal Reserve’s move on interest rates.
Michaël van de Poppe said Bitcoin is poised to run up before the next FOMC meeting takes place and then see a correction. The run-up on Bitcoin is towards its next crucial resistance at $17,000, according to the cryptocurrency trader. He said he was looking for longs around $16,500-$16,600 levels.
Santiment noted that Ethereum “quietly” rebounded above $1,260 for the first time in 3 weeks.
“Though not quite at the level of the big whale dip buys on December 16th ($ETH’s local price bottom), whales are showing increased interest again,” tweeted the market intelligence platform.
Cryptocurrency analyst “Altcoin Sherpa” said that Bitcoin is pretty much in the same place it was a week ago.
“As long as [Bitcoin] can remain stable, I think that we see [Altcoins] do pretty well in the short term. Highly unlikely this is the ‘bottom’, though. Huge compression going on here,” said the pseudonymous analyst on Twitter.
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