Sunday, May 26, 2024

Market Watch March 16: Bitcoin gains as crypto market leans on Federal Reserve’s rate hike

Bitcoin has recorded a slight gain over the last 24-hours but remains short of the $40,000 mark. It is changing hands at $39,181. Yesterday BTC was trading at $38,000 and has gained 1.04%. The popular cryptocurrency pumped just up to $40,000 and is facing resistance.

Willy Woo, an on-chain analysis, says short-term investors entered Bitcoin across history and charted the daily change in its value. This resulted in a cost basis, that results when inexperienced traders sell BTC to experienced traders. It is often observed during a bitcoin free-fall, which coincides with the market bottom. Woo highlighted that the cost basis underwent significant dips in the previous bear markets. He says it’s inconclusive whether we have capitulated yet. And based on the cost basis signal, there is an impending drop.

Ethereum gained nearly 3% in the last 24-hours and as per data from CoinMarketCap, it is trading at $2,619. Popular altcoins are seeing significant gains. Avalanche is up by 2.52% in the last 24-hours and Solana has gained 3.73%. Moreover, Cardano has gained 1.20% and Polkadot 3.05%. The meme coins, Dogecoin and Shiba Inu have also gained nearly 0.40%. However, Terra LUNA is the biggest loser. It lost about 6.05% in the last 24-hours. XRP is also down by 0.21%.

Meanwhile, the US Federal Reserve is raising rates. The Federal Open Market Committee (FOMC) is expected to make the announcement later today. Sources believe the Fed is expected to hike the rate by 25 basis points, a first-rate hike in the United States since before the COVID-19 pandemic.

Experts say the rate hike will not have much of an impact on the market as the Fed has for a long time aired its intention.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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