Bitcoin Up

Depricated as of Oct 2022

Some CRYPKYP functionalities are depricated as of October 2022 and will no longer be populated until further development and future version.
Although all here is visible and interactable you can not Contribute to those articles.
Try looking at other information on the Platform and Contributing there!

Have a great day,

“Bullish increase in interest rates” – Why cryptocurrencies jumped today despite negative news

Bitcoin Up
Image Credit: CRYPKYP
1658997613 28 Jul / 08:40

Attempts by the Fed to rein in inflation by boosting interest rates are typically accompanied by a decline in investment activity across markets.

Since the news of a 75 basis point interest rate rise in the United States, crypto markets have been surging, with analysts speculating that the markets may have initially prepared for far worse.

As a result of the Federal Open Markets Committee's (FOMC) decision to hike interest rates once more, the price of Bitcoin (BTC) increased by almost 8% on July 27 to over $22,500. Ether (ETH), Polkadot (DOT), and Polygon (MATIC) all had double-digit price increases during the previous twenty-four hours.

Wednesday, Quantum Economics founder and CEO Mati Greenspan humorously questioned on Twitter whether this was a “bullish rate rise.”

In an interview with Cointelegraph, Greenspan remarked that investors were undoubtedly anticipating a decline and argued that the recent rebound is nothing out of the usual.

“Markets enjoy rising on Fed days, even when their decisions are difficult. Powell is especially adept at conveying terrible news. Investors expected a worse outcome.”

Attempts by the Fed to rein in inflation by boosting interest rates are typically accompanied by a decline in investment activity across markets.

However, the community is divided on whether the recent pump will have sufficient upward velocity to maintain or whether a significant reversal is likely before the market begins to recover completely.

Pav Hundal, an analyst at the Australian cryptocurrency exchange Swyftx, told Cointelegraph that the business was “surprised by the excitement of the reaction to yesterday’s rate hike,” given that the underlying macroeconomic picture remains uncertain.

Whenever there are rate hikes, the markets appear to hear something different than what the Fed says. In June, the Fed suggested that significant rate increases would be “uncommon;” this time, Jerome Powell indicated that the growth rate may “slow.”

“The best predictor of the future is the underlying economic data, and for the time being at least, it appears that certain inflationary pressures are lessening, with gas prices decreasing alongside futures prices for commodities such as corn and wheat, as well as some shipping costs,” he said.

Hundal noted that Swyftx’s early trading increased by 100 percent in response to the announcement, demonstrating that “many individuals find value in the present market values.”

The expert added that a more significant bullish or negative trend would likely not emerge until the U.S. reveals critical statistics about the performance of its gross domestic product (GDP) in the coming days, indicating whether the country is officially in recession.

“The good news is that we won’t have to wait too long to find out what happens to the cryptocurrency market once the first volatility subsides. The United States is ready to announce its GDP numbers, which will be a significant stress test. Any negative attitude here has the potential to wipe away recent gains.”

“However, if the macro environment shows indications of resilience, we may see the crypto market cap stable at $1 trillion and then climb,” he said.

Last News and Media
CRYPKYP contain links to third-party websites, resources, and advertisers. CRYPKYP does not control, sponsor, recommend or otherwise accept responsibility for any third-party content because we are not responsible for the availability of these outside resources or their contents or privacy practices. It will help if you direct any concerns regarding any third-party content to such a third party. We don't accept responsibility for the content of external websites linked to through the Site or the Services. Third-party content is accessed at the user's own risk. CRYPKYP distributes content from third-party publishers as indicated on the site from time to time mainly in Airdrops, News / Media, Whale Alerts, and Rumors. In these circumstances, CRYPKYP only provides limited stylistic input to the content. CRYPKYP does not verify and takes no responsibility for the accuracy of the content provided by any such third-party publishers.