Jerome Powell, chair of the FED has admitted that they ‘took too long’ to raise interest rates as their plan for inflation was simply to ‘let the market re-balance’. Several issues accross supply chain, war in Ukraine, raise in oil prices to name a few caused high inflation never before seen. Crypto market investors are concerned about the impact another FED rate hike could have on their portfolios.
Bitcoin and Ethereum traded in the green on Tuesday evening as the global cryptocurrency market cap fell 0.8% to $974.3 billion at press time.
|Cryptocurrency||24-Hour % Change (+/-)||Price|
|Ethereum Classic (ETC)||+8.1%||$25.16|
Why It Matters: Risk assets like stocks and cryptocurrencies continue to remain correlated. At press time, major coins traded higher as stock futures rose.
The S&P 500 and Nasdaq futures rose 0.8% and 1.4%, respectively, at press time as investors digested earnings data from Google’s parent Alphabet Inc GOOGL GOOG and Microsoft Corporation MSFT, the Redmond, Washington-based tech giant.
Cryptocurrency investors are also on tenterhooks regarding the ongoing U.S. Federal Reserve‘s Open Market Committee meeting, where an interest rate hike is expected.
Foreign exchange trader Miad Kasravi tweeted that the Bitcoin mean reverts each time there is an FOMC meeting. The price action for the apex coin tends to reverse leading up to the meeting, according to the charts shared by the trader.
Does FOMC matter to BTC?
You tell me, below are all post meeting price action for 2022.
BTC mean reverts every single time.
Next FOMC meeting is tomorrow pic.twitter.com/IusJfnBM21
— Miad Kasravi (@ZFXtrading) July 26, 2022
Michaël van de Poppe, a cryptocurrency trader, described Google’s earnings as “very strong” and said Microsoft’s were also “not bad.”
“Probably [a] sell-off happening going into tomorrow’s FOMC meeting,” said Van de Poppe, adding that he expects “green after.”
Probably sell-off happening going into tomorrow’s FOMC meeting.
All the info can be found here:https://t.co/IjEwuqN4G3
— Michaël van de Poppe (@CryptoMichNL) July 26, 2022
On-chain data company Glassnode tweeted that small investors, or shrimps, with less than 1 BTC holding have increased their holdings of circulating Bitcoin supply from 5.2% to over 6% since Terra Classic (LUNC) collapsed.
— glassnode (@glassnode) July 26, 2022
Going forward, investors will focus on earnings from Apple Inc AAPL and Amazon.com, Inc AMZN, which will be released on Thursday. Also due Thursday is the second-quarter U.S. GDP data.
“If earnings and U.S. GDP are worse than expected, we could see increased fear in the market as recession concerns strengthen, wrote GlobalBlock analyst Marcus Sotiriou in a note, seen by Benzinga.