Fed decision boosts Bitcoin and cryptocurrencies
The Federal Reserve is taking a stronger approach than during the financial crisis 2008, to slow the downward trend in the US economy. The crypto market has recovered along with the US stock market futures, reducing fear of the market for the first time since early March.
The Dow Jones has reached the “upper limit” after having moved almost 1 in pre-exchange trading. 00 0 points has increased. The Bitcoin price rose by 15 percent and closely followed the trend of the US stock market.
Fed gives a crucial lifeline for crypto
Until 23. In March, the top crypto traders expected a steep withdrawal for Bitcoin in the short term. Many described the sudden rise in Bitcoin to $ 6 600 as Counterfeit and BTC corrected to almost 6 almost immediately after the price increase. 100 dollars.
However, the crypto market has recently 12 hours experienced a steady increase in momentum, which led to the Bitcoin price rising to 6. 800 $ rose. The $ 6 mark 800 $ for Bitcoin was often referred to as a “Break it or make it ”resistance area viewed, which dictates another extended rally for the crypto market or the resumption of a downtrend.
The Fed ironically gave the crypto market a crucial lifeline in the short term. Her fiscal policy alleviated the significant pressure on stocks, which ultimately resulted in an increased appetite for high-risk investments.
In the past week, all types of assets crashed regardless of their risk-on, risk-off, or safe haven characteristics as the US stock market had historic sell-off rates.
Led by gold, stocks and cryptic assets started a rally earlier in the week, sparking optimism for a relief rally after weeks of correction.
A positive factor for cryptocurrencies in the short term
Much of the buying demand in the past three days came from the spot market. The open interest of large futures, which reflects the total amount of long and shorts open at a certain point in time, has almost halved on the major stock exchanges.
Before the sudden crash of Bitcoin to 3. 600 Dollar on 12. March, the open interest of the perpetual swap futures contract on BitMEX for Bitcoin was around $ 1 billion. According to Skew.com, the open interest of XBTUSD at BitMEX is now only around 370 million dollars.
The price of Bitcoin has increased since reaching 3. 600 $ almost doubled, and renowned technical analysts expect the Bitcoin price to rise to up to 7 in the near future. 500 till 8.500 $ will increase.
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