Fed activity in the markets
With the Fed's interest rate decision and President Powell's statements, global and crypto money markets have moved.
Yesterday, the markets followed the Fed's interest rate decision and Powell's speech. In line with the expectations, the Fed increased the policy rate by 25 basis points to the range of 4.75%-5%. With this increase in interest rates, the highest interest rate seen in 2007 was reached. Although there was a rapid rise in Bitcoin with the expected interest rate, after Powell's speech, it was withdrawn to $ 26600 by 7%, while Ethereum was tested at $ 1710 with a decrease of 5%. The same-selling outlook was also dominant in the US stock markets.
FED has affected the market
In his speech, Powell pointed out that inflation continues to be high and that tightening of the balance sheet will continue to reach the 2% target, adding that additional interest rate hikes may be necessary. He also emphasized that they are ready to use all the opportunities for the banking sector, that this crisis will lead to tighter credit conditions and that the banking system is strong. The Fed updated its unemployment forecast to 4.5% from 4.6% for 2023. While keeping the average interest rate expectation for 2023 at 5.1%, it increased it from 4.1% to 4.3% for 2024. After the announcements, decreases were also observed in the dollar index.
The news feed following Powell's speech supported the decline in cryptos. In the news, the SEC reported that TRX and BTT are unregistered securities. He then sued Justin Sun and his three affiliated companies.
Leaving behind a day of intense data and news, there are minor recoveries in futures indices and cryptos. The total value of the crypto market is moving at the level of $1.13 trillion, above $1 trillion, which is psychological resistance. Bitcoin's dominance is 47.1%, while Ethereum's dominance is 18.9%. Today, LTC, LOOM and RLC Bitay stand out as the most rising cryptocurrencies.
CBRT's interest rate decision and consumer confidence index data will be followed in Turkey today. Rather than macro data, news flows in the internal dynamics of cryptocurrencies today may be important for market movements.
