Bitcoin ( BTC) as well as a host of other cryptocurrencies were trading slightly higher on Tuesday, as investors prepare themselves for an announcement by the U.S. Federal Reserve’s policy announcement on Wednesday.
Analysts anticipate the Fed to increase the interest rate by 25 basis points. This could tighten financial conditions which helped support the growth in speculative assets during the last year. It is also expected that the Fed is also scheduled to announce plans to shrink its $9 trillion balance account.
In the meantime, there was a 4th round of discussions with Russian as well as Ukrainian diplomats that took place on Monday, but they’re no agreement on the ceasefire.
In the world of crypto, Bitcoin was lagging other cryptocurrencies (altcoins) for the first time on Tuesday. This might indicate the greater willingness to take risks in traders. BTC has gained approximately 2% over the last 24 hours. This is in contrast to an increase of 5% in Ethereum ( ETH) as well as a 20% rise in The graph’s GRT token.
There is an underlying uncertainty in the markets. “Funding rates (the cost of holding long positions in the perpetual futures listed on major exchanges) on BTC perpetual futures contracts remain in limbo, unable to hold positive or negative for an extended period,” Fundstrat Global Advisors’s email. “This indicates that traders are unwilling to make significant bets one way or another.”
*Bitcoin (BTC): $39,758, +2.48%
*Ether (ETH): $2,665, +5.02%
*S&P 500’s daily close 4:262, +2.14%
*Gold: $1,918 for an troy ounce -2.11 percent
*Ten-year Treasury yield day-to-day close: 2.16%
The gold, bitcoin and ether prices are calculated at about 4:00 pm New York time. Bitcoin complements CoinDesk Bitcoin Price Index (XBX) Ether points out to an index of the CoinDesk Ether Price Index (ETX) Gold serves as the COMEX spot price.
Is there a route to get an absolution?
Some analysts anticipate selling pressure to diminish across all speculative investments, including cryptos and stocks.
“Key capital market indicators show that a significant slowdown in global growth is already discounted,” MRB Partners, an investment strategy enterprise came out with a new report. As tensions in the Middle East ease global equity prices could enjoy significant upside, according to MRB. This could be a positive thing for cryptocurrency, given the increasing relationship with stocks and bitcoin.
As time passes and assuming no policy mistakes or unexpected events the market’s reaction to rate hikes might become less unstable. In the case of crypto markets, the extreme bearish mood could indicate an eventual unraveling of short-term positions in the event that prices rise.
The chart below shows declining prices from peak to bottom in the bitcoin market and global equities. The recent sell-offs have been a hefty one although they’re still above previous highs (except Chinese internet stocks).
Outflows of crypto funds
The digital asset investments recorded the release of $110 million this week following the highest amount of outflows over the past three months in the week prior. This could indicate an edgy attitude among crypto investors in the face of geopolitical and macroeconomic risk.
- Spread across all assets$69.9 Million of bitcoin-related funds were withdrawn, $50.6 million exited ether funds, and flows to other cryptos were moderately positive.
- There is still some interest in cryptocurrency: Despite outflows in digital asset funds that invest directly in crypto, investment products that focus on stocks related to blockchains remained highly popular, according to a CoinShares report, which showed the inflow of $4 million over the in the last week.
- Crypto Unicorns has closed a $26 million token sales ahead of an NFT-based game’s launch crypto Unicorns is a top cryptocurrency that is a non-fungible (NFT) collection of the Polygon blockchain has announced the successful conclusion of the sale of $26 million which included the top buyers TCG as well as Backed VC. The sale takes place just as Crypto Unicorns prepares to launch an online game that earns money this month.
- Enjin introduces Polkadot para chain to support NFTs and gaming blockchain company Enjin has announced that it will launch Efinity one of the very first para chains that is part of the Polkadot network devoted to non-fungible coins ( NFT). The Efinity ecosystem is expected to host more than 100 blockchain-based games and apps one of which will be CryptoBlades which is an online play-to-earn NFT-based game that has over 1 million players (it’s currently playing on five smart contract blockchains and Efinity will be the sixth) according to the CoinDesk’s Eli Tan.
- Hashdex estimates that the first price for shares will be $9.72 According to CoinDesk’s Paulo Alves. Some of the most well-known Web 3 tokens include Polkadot’s DOT and Chainlink’s Link along with FIL from Filecoin.