TL; DR
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After the Fed held interest rates steady, the crypto market turned to spending, pushing BTC from $56.5k to $59k, ETH $2.8k to $3k, and SOL from $118 to $136.
Full story
“Now we hope that as you read this, the price will skyrocket as market players take the opportunity to buy BTC at a discount.”
This is how we ended this section in yesterday’s edition.
Famous last words. Around the time we published, Bitcoin had not skyrocketed, but had instead fallen to $56.5k (from $60k).
Good news is:
That gap was largely closed a few hours later, when Federal Reserve Chairman Jerome Powell clicked a repeat of the same speech he’s been giving for months:
“We are keeping interest rates at their current level because inflation is still higher than expected. We may lower interest rates later this year, I don’t know.”
— J Powell (not a direct quote, but the gist of what was said)
…and funnily enough, the market loved it!
(Especially because there was an underlying fear that the Fed was going to raise rates).
Once these fears were allayed, the crypto market went into a spending spree – sending Bitcoin back up to $59,000, Ethereum to $3,000 (from a local low of $2.8k), and Solana to $136 (from a local low of $118). ).
Bad news is:
We’re not out of the woods yet.
These price movements were short-term responses to scheduled news events; the market’s overall fear and greed index is still hovering around ‘neutral’ and in danger of sliding further into ‘fear’ territory.
In that case, maybe we should all hurry up and wait.
