The crypto market is all ears to the comments coming out of the Federal Reserve and reacting accordingly. Stocks took a fall on Thursday when James Bullard said he supports the Federal Reserve raising interest rates by a full percentage point by July as an effective response to soaring inflation.
Bitcoin also took a hit. It fell 1.58% in the past 24-hours, as per CoinMarketCap. And is trading at $43,170. But in the past seven days, the popular crypto has recorded a growth of 15.75%. Ether is also down. At the time of writing this article, the world’s second most popular crypto was trading at $3,069. ETH has been down by 3.67% in the past 24-hours.
Altcoins have also taken the bullet. Many are seeing red and down as much as nearly 6% in the past 24-hours. Terra and Polkadot are down by 5.52% in the past 24-hours, Solana by 6.09%, Cardano by 3.19% and XRP by 5.54%. The popular meme coins Shiba Inu and Dogecoin are also in the red.
Lyn Alden Schwartzer, the founder of Lyn Alden Investment Strategy, pointed out that things like gold and bitcoin have a brief drop in hot CPI prints. This is attributed to the market assuming faster rate hikes by the Fed. Analysts said buyers reacted quickly to the Federal Reserve official’s statement. They could start selling their digital assets as BTC is headed to the resistance level and further drop is likely.
Overall, there is optimism for the market to stabilize in the weekend.
