The two largest cryptocurrencies traded in opposite directions as of 8:11 p.m. Thursday, with the global cryptocurrency market cap down 0.3% to $837.4 billion.
|Cryptocurrency||24 Hour % Change (+/-)||Price|
|UNUS SED LEO (LION)||+4.5%||$4.04|
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Why it matters: Cryptocurrencies fell in tandem with stocks as the bear market on Wall Street stalled. The S&P 500 and Nasdaq were down 0.3% and 0.35%, respectively, on Thursday.
On Thursday, St. Louis Federal Reserve Chairman Jim Bullard So far, interest rate hikes haven’t had enough of an impact on inflation, he said. Meanwhile, weekly initial jobless claims remained light at around 220,000, meeting consensus estimates.
“The Fed’s Bullard noted that the policy rate is still not restrictive enough. He also highlighted a dove scenario that could push the fund rate to 5% and the hawk rate to 7%. Bullard said he is targeting a minimum of another 125 basis points in interest rate hikes, which would bring his target range to 5.00-5.25%, OANDA Chief Market Analyst said. Edward MoyaIn a note seen by Benzinga.
“Cryptocurrencies are weakening as risk appetite has just left the building. Today’s weakness is largely due to exhaustion with the bear market rally that has boosted stocks,” the analyst said.
“A lot of bad news has been priced in, so there could be another collapse of a major cryptocurrency company, or a risk-off movement on Wall Street to push Bitcoin down from recent lows.”
The Federal Reserve’s next policy meeting is scheduled for December 13-14 in 26 days. According to data from the CME FedWatch Tool, 80.6% of interest rate traders expect a 50 basis point hike at the December meeting.
Screenshot from CME Group’s Fed Watch Tool
Justin Bennett “Anyone hoping for a turnaround or even a pause in rate hikes will be disappointed,” he tweeted. “The Fed will hike until something breaks,” the trader said.
I say this, but anyone hoping for a turnaround or even a pause in rate hikes will be disappointed.
The Fed will increase until something breaks. https://t.co/ruftmCLp0H
— Justin Bennett (@JustinBennettFX) November 17, 2022
Meanwhile, the cryptocurrency market continues to assess its collapse Sam Bankman-Fried– led FTX and Alameda Research.
Cryptocurrency trader Michael van de Poppe said, “The whole story of FTX using client funds to buy property and also lending money to itself. It’s mental. But it starts to explain that $8 billion is suddenly completely gone.
The whole story of FTX using customer funds to buy property and also lending money to itself.
But it starts to explain that $8 billion is suddenly completely gone.
— Michaël van de Poppe (@CryptoMichNL) November 17, 2022
lead chain analyst with Glass knot He said that all Bitcoin that had entered the exchanges since January 2018 was “now withdrawn”.
“Self-control and attentive [Bitcoin] markets are on the menu again,” the analyst said.
with #Bitcoin just going beyond the stocks, we now have a ~5 year high in Sovereign Supply which is 87.7% of the total supply.
All $BTC It has been listed since January 2018 and has now been withdrawn.
— _Checkɱate (@_Checkmatey_) November 18, 2022
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