US stock indices have fallen significantly over the past few days. It didn’t take long for the FED to respond. This week, the chairman announced another rate hike, which is expected to come later this year. The authority wants to continue to fight against high inflation. Contrary to all expectations, Bitcoin responded with a significant increase above an important mark.
Will more rate hikes follow?
The US Federal Reserve’s goal of reducing inflation has not yet been achieved. Now the situation is getting worse. All three US stock indexes (Dow, S&P and Nasdaq) fell for three straight days.
Dow lost 0.66 percentage points today. The S&P slipped about 0.80 percent. And Nasdaq was up 0.50 in the last 24 hours today.
Mega-cap technology and technology stocks were particularly hard hit by this decline. Tesla stock is down 0.44 percentage points today and is relatively stable compared to the top three performers over the past 24 hours. Investors are now asking themselves how the values should continue.
Ryan Detrick, chief market strategist at the Carson Group in Omaha, explained that this year has been a historic summer. In an interview with Reuters he explained: “Historically June is not a very strong month for equities but this year could go down as one of the strongest Junes ever. The market seems to be catching a breather after a big start to the month.” He goes on to say that he expects the stock market to take a little break.
As for the fed rate hikes, he expressed confidence. “There could be another rate hike, but I don’t think anyone believes there will be two. Markets are assuming that the Fed is close to done.”
Today, Chairman Powell delivers the semi-annual Report on Monetary Policy before the US House Financial Services Committee: https://t.co/nHEybW0TpEhttps://t.co/pgnEGEOsSt
Watch live: https://t.co/Ayw86RlcZn pic.twitter.com/fMQ5uKeTzp
— Federal Reserve (@federalreserve) June 21, 2023
However, most financial markets assume that there will be two rate hikes in the future. According to Reuters, 74.4 percent voted that the 25 basis points could only be achieved in this way.
Bitcon defies the negative headlines
As a rule, negative headlines of this kind have a negative impact on the crypto market as well. As soon as an unstable economic situation developed within the United States of America, the prices of cryptocurrencies also fell. At least that has been the case so far.
Today, however, the value of bitcoin continues to rise. Already on June 21, after the Fed announced the interest rate hike, the price responded with a significant upward movement. On Thursday it reached the USD 30,000 mark.
The course tested this important mark once in April. However, she was unable to keep it long-term. Now there is a lasting effect. In the last 24 hours, the bitcoin price gained another two percentage points, climbing to a level of $30,295.
The market capitalization of the leading cryptocurrency is currently valued at over USD 587.862 billion. The 24-hour trading volume is down 45 percentage points and currently stands at $16,404.
Bitcoin is the first published cryptocurrency and for this reason it can look forward to a large audience. Whether small investors or institutional trading – the coin is currently very popular. New crypto traders face many questions before making their first investment. In one of our posts on trading, we answer the question of how and where buyers can buy Bitcoin without fees.
The calm before the storm? Investors support Bitcoin
The current increase suggests that investors are initially satisfied that the main interest rate has not been raised this month. Some may have expected that to happen on June 15.
Still, the Fed agency’s words indicate that there will be another rate hike in the near future. This year it could be worth two more.
Despite the jitters within the United States and the potential downsides for crypto traders this year, support remains strong.
This is a pleasing picture, especially given the current state of SEC lawsuits. These negative headlines caused a lot of turmoil and panic selling about two weeks ago.
But not only Bitcoin saw an increase today. Alternative coins have been able to achieve significant profits in some cases. Traders looking for a new investment should have some of these cryptocurrencies on their watch list right now. Whether you should buy these Altcoins will be up to individual review of the projects.
ATR: Calvaria – a promising crypto game
The state of Bitcoin today may present an overall positive picture for many crypto traders. But the past shows that such a positive development can change quickly. Prices can plummet within hours and trigger further panic selling.
So it is difficult to assess the situation at the moment. For this reason, crypto traders should check prices regularly and also be aware of the latest news from the Web3 industry. One of them in the last few months is about the release of a new Play to Earn game called Calvaria.
The developers of Calvaria Games are looking for a way to connect the Web2 to the Web3 world. They are currently developing a game for this purpose, which is available for free. The players should have a chance to earn real money in the fantasy card game. Demand was strong right from the pre-sale. It finished well ahead of schedule and seemed to win over investors. The coin was launched there in February. According to the developers, Calvaria Game should be launched this year. The community is currently waiting for the beta version.
