Cautious rebound in bitcoin and cryptocurrency prices after Fed meeting. – Chatborgne

The website Bitcoin and altcoins are supporting the short-term rally triggered on Wednesday. following a rate decision by the US Federal Reserve (Fed) that the market decided to interpret as unaggressive. The website increase of 75 basis points, the largest since 1994 The market had already priced it in, so investors clung to the promise that such actions would not be commonplace, made by agency chairman Jerome Powell, and got carried away by the appetite of the risk. However, experts say caution is warranted.

Despite the increases of around 7% and 11% for bitcoin and ethereum. and the rally of other tokens such as solana, which is up 20% in the last 24 hours, and cardano, which is up 12%, the market cap is still below the trillion dollar mark (950 billion of dollars). Additionally, Satoshi Nakamoto’s creation has hit an 18-month low of $20,000, a price level which, although many experts point to as a market floor for the creation of Satoshi Nakamoto. ‘digital asset, is very exposed and vulnerable.

About the ethereum, the rebound took it back to the gates of $1,200.. However, it also looks very weak, as 1.5-year lows were hit at $1,025, according to CoinMarketCap, a price that exposes crypto funds such as 3 Arrows Capital. The website The cryptocurrency liquidity crisis started this week. by digital currency lending and exchange platform Celsius, could be systemic and drag down other businesses, especially funds such as those mentioned above. Other industry giants, such as Coinbase, have already announced layoffs.

However, the short-term relief is undeniableas the cryptocurrency market followed the stock market rally in Fed heat. Still, bitcoin “got a little bit of love and I find it hard to imagine a scenario in which that would change,” notes Oanda analyst Craig Erlam.

Risk appetite has faded and the days of ultra-low rates are over.. There is not the same speculative mood that existed when bitcoin exploded higher,” he adds. “You can still believe that bitcoin can thrive in the future, but right now it’s offering nothing but speculative rallies, so it’s going to continue to struggle,” he continued. “Especially when you see stocks like Celsius and Binance. What looked like strong support below $20,000 suddenly looks very fragile. »

“As long as the support continues, we still have the hope that there will be less losses in the future.“, adds for his part Craig Erlam, head of analysis at Avatrade. That said, “speculators believe that the 20,000 barrier is no longer a reliable market floor and it is likely that the price may continue to fall,” he adds, so “it is likely that the price will continue to lower “. we are likely to see further declines to a price level near $15,000.“.

However, the expert warns that “it is very important to keep in mind that the prices of ethereum and bitcoin are both extremely oversold on the daily and weekly time frame. according to the RSI, which means bargain hunters could soon jump into the ring.

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Cautious rebound in bitcoin and cryptocurrency prices after Fed meeting. – Chatborgne

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