Recurring market commentary on what’s happening in the crypto markets, summarized by the Crypto Broker team at Crypto Finance AG.
Market commentary
Good Morning!
Bitcoin (BTC) is currently trading at $20.6k (+1.6% in 7 days) while Ethereum (ETH) is currently sitting at $1.58k (+4.56% in 7 days). The Ethereum vs. Bitcoin ratio (ETH/BTC) is consolidating at 0.767 (+2.94% in 7 days).
Fed pivot nowhere near close
On Wednesday evening, the Fed decided to raise the US interest rates by the anticipated 75 bps. Jerome Powell released a rather hawkish speech, saying that the level of interest rates will likely need to be raised higher than previously expected and that it is still very premature to think about pausing them. This comes as no surprise as the latest data still shows a strong labour market with sticky inflation.
On the positive side, discussions of slowing the pace of hikes may come in the next meeting, or the one after. A 50 bps increase on December 14th currently has a probability of 47.2%. Next week’s CPI numbers will give more guidance. Equities initially rallied after the event, before descending into the close. BTC and ETH followed, but were able to recover some losses after the equity market closed.
Mini "alt-season"
Meanwhile, it seems that alt-season is in motion albeit the bleak macro outlook. Three-fourths of the Top 100 coins have gained this week. The FTX Altcoin Index perpetual has risen to levels not seen since August 14th. The rally is likely attributed to memecoins and “real world” partnerships.
In the last 24 hours, MATIC is up almost 17%, as Meta announced on Wednesday evening that their Instagram users will be able to mint, showcase, and trade digital collectibles as NFTs on the Polygon network. Furthermore, the collectibles are set to be stored on Arweave. The native coin AR rallied 47% after the news. Other storage network projects such as Filecoin (FIL) and Ocean Protocol (OCEAN) followed suit, finishing +11% and +33% on Thursday.
Happy Trading!
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