The Crypto market vacillates under the weight of the prudent declarations of Jerome Powell, president of the federal reserve. While investors hoped for encouraging signals, Powell reaffirmed a strict position on interest rates, plunging bitcoin and altcoins in a lower spiral. A wave of liquidations follows, revealing increased nervousness in the face of macroeconomic uncertainties.
The crypto market under pressure: Bitcoin and Altcoins in free fall
Powell's words acted like an electric shock on the Crypto market. Bitcoin, often considered a refuge, lost more than 2 % in 24 hours, falling to $ 95,000. Altcoins have not been spared: Ethereum (-3.76 %), XRP and Solana (-4.78 %) follow the trend. Even the same as Dogecoin, Shiba Inu and Pepe undergo significant losses.
This generalized sales pressure is accompanied by an increase in the volume of exchanges, which increased by 8 % to 105.57 billion dollars. An apparent contradiction that highlights the intensity of capital movements. Liquidations on the Crypto market were massive: $ 44 million for Bitcoin, 30.23 million for Ethereum and 6.05 million for XRP.
The visibly nervous investors are preparing for a prolonged monetary hardening scenario. High rates make risky assets less attractive, and cryptocurrencies, on the front line, pay the price.
Macroeconomic uncertainties: the next indicators under surveillance
Powell's statements are only the emerged part of the iceberg. Investors are now scrutinizing the next economic data, including the consumer price index (IPC) and the production price index (IPP). These indicators could either confirm the inflationary fears, or offer a respite to the market.
In this context, some cryptos resist better than others. However, the shadow of the Fed plane. Powell has clearly indicated that a restrictive monetary policy would remain in place until inflation is under control. A prospect that weighs heavily on risky assets, including cryptocurrencies.
The wave of liquidations that strikes the crypto market is a brutal reminder of its sensitivity to macroeconomic decisions. Powell's statements exacerbated the fears, but they also highlighted the relative resilience of certain projects.
In the short term, everything will depend on the next economic data. Down inflation could restore hope, while stagnation or increase would prolong uncertainty, according to the alarm of bitcoin minors.
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