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Monday, March 27, 2023

Cryptocurrencies wobble on expectation of Fed tightening

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The expectation for the rate hike of the Federal Reserve of the United States steered investments away from risky assets and pushed the set of cryptocurrencies. In this sense, the negative correlation with bonds and shares, the poor performance of large technology companies and regulatory advances are added.

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Among the top 10 cryptocurrencies, it leads the fall Polygon with 3%, followed by the drop in Bitcoin, Cardano (-2.4%) and Ethereum. Ripple it is the only one that registers a rise of 1.7%.

After opening the year on the up and recording almost 50% growth, Bitcoin is still trying to consolidate at $24,000.

This afternoon will be known bill of the monetary policy meeting of the Federal Reserve which will give further indications as to whether the authority will choose to insist on the increase in interest rates.

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In the same sense, the European Central Bank. Goldman Sachs anticipated that it expects the organization to apply its third rate update of the year and take it to 3.5%.

He monetary tightening it could curb demand for a variety of assets, such as stocks or cryptocurrencies.

In the same sense, the expected end of the negative correlation between stocks and bonds operates together with the poor performance of technology companies during 2022. In parallel, regulatory advances triggered market volatility while the expectation is that it will continue Given that the Securities and Exchange Commission (SEC) decided to move on Kraken and Binance USD.

The final blow is being dealt coinbase which, although it reported good results, showed a drop in the total number of users and a 12% drop in revenue from transactions.

Source: Ambito

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