Crypto markets respond positively to softer US rate hike announcement

By Darren Parkin

The Federal Reserve Bank of the US announced a 0.25% rate hike yesterday, the slightest adjustment since starting its aggressive inflation targeting in March last year.

Investors and analysts are seeing it as a signal that the Fed may finally be getting a handle on inflation, news to which the markets have responded positively.

Bitcoin is up by 3.6% since yesterday, trading for $23,790 this morning, while Ethereum has jumped 6% over the same period to $1,670 – a momentum shift for the original smart contracts crypto, which has lagging Bitcoin since the rally started a month ago.

The CoinDesk Large Cap Select Index (DLCS), which measures the market cap weighted performance of some of the largest cryptocurrencies, is up by 4%, indicating strong performance by the rest of the crypto market.

Yesterday’s Crypto AM Daily in association with Luno

In the markets

The Bitcoin economy

*Data can be found at https://terminal.bytetree.com/

Total crypto market cap

The total capitalisation of the entire cryptocurrency market this morning was$1,089 billion.

What Bitcoin did yesterday

We closed yesterday, February 1, at a price of $23,723. The daily high yesterday was $23,764, and the daily low was $22,877.

Bitcoin market capitalisation

Bitcoin’s market capitalisation this morning was$457.370 billion. To put it into context, the market cap of gold is $13.018 trillion and Tesla is $572.84 billion.

Bitcoin volume

The total spot trading volume reported by all exchanges over the last 24 hours was $30.364 billion. High volumes can indicate that a significant price movement has stronger support and is more likely to be sustained.

Volatility

The price volatility of Bitcoin over the last 30 days is 36.88%.

Fear and Greed Index

Market sentiment today is 60, in Neutral.

Bitcoin’s market dominance

Bitcoin’s market dominance today is 44.16. Its lowest ever recorded dominance was 37.09 on 1 January 2018.

Relative Strength Index (RSI)

The daily RSI is currently 73.81.Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price – an RSI reading of 30 or below indicates an oversold or undervalued condition.

Convince your fam: Soundbite of the day

“We can’t help but notice in this reflection how much has been built during the past year despite the setbacks and how much more is on the horizon: from the steadfast growth and exciting possibilities for bitcoin, a very aggressive developer road map for Ethereum, and a whole range of advancements in DeFi and stablecoins. These are not the signs of an industry dying, but one that is clearly here to stay.”

Fidelity, one of the largest asset managers in the world

What they said yesterday

An instant payments network…

Markets responding to interest rate hike…

Bitcoin is open to anyone…

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All feedback on Crypto AM Daily in association with Luno is welcome via email to James.Bowater@cityam.com 🙏🏻

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Q&A with Duncan Coutts, Principal Technical Architect at IO Global

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MPs are falling silent over potential of cryptocurrency

Erica’s ‘Crypto Wars’ handed honours in Business Book Awards

‘Let people invest’: Matt Hancock makes case for liberal crypto rules

Explained: Why the Treasury is so sold on stablecoins

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The cryptocurrency fundraisers behind Ukraine’s military effort

Crypto AM: Features

Crypto AM: Founders Series

https://www.cityam.com/profile/crypto-am-founders-series/

Crypto AM: Industry Voices

Crypto AM: Contributors

Crypto AM: In Conversation with James Bowater

Crypto AM: Tomorrow’s Money with Gavin S Brown

Crypto AM: Mixing in the Metaverse with Dr Chris Kacher

Crypto AM: Visions of the Future, Past & Present with Alex Lightman

Crypto AM: Tiptoe through the Crypto with Monty Munford

Crypto AM: Taking a Byte out of Digital Assets with Jonny Fry

Crypto on the catwalk

Crypto AM: Events

Cautionary Notes

It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. City AM, Crypto AM and Luno always advise you to obtain your own independent financial advice before investing or trading in cryptocurrency.

All information is correct as of 08:00 BST

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