In the run-up to the U.S. Federal Reserve’s looming hawkish monetary shift, BTC treads steadily above its new $29,000 support, while a gloomy Tuesday pervades other cryptos. The only exception, DOGE, posted an 8% rise, a ripple effect of a CoinDesk report insinuating the potential wider use of DOGE and other cryptos in Elon Musk‘s radical Twitter reincarnation, X.
Musk, a long-time DOGE enthusiast, has been instrumental in driving its price, causing many, like Brian D. Evans, CEO and founder of a Web3 venture studio and Bobby Axelrod of Axe Capital, to anticipate Musk enabling DOGE payments on the platform.
Despite this, BTC recently traded at $29,197, an infinitesimal rise in 24 hours following a slip below $29,000 on Monday – its lowest since June. This followed the Wall Street Journal’s report alleging wash trading by Binance‘s affiliates and China’s challenging economic recuperation warnings.
A momentary BTC increase to $31,800 after Ripple Labs’ partial victory against the SEC and a flicker of optimism for a spot bitcoin ETF soon diminished. Not even the U.S. central bank’s expected decision to increase interest rates by 25 basis points could arouse the unmoved crypto markets, in spite of recent promising macroeconomic events.
Consequently, Noelle Acheson, former CoinDesk and Genesis Trading Head of Research, postulated in her Crypto is Macro newsletter, that inflation and rate worries could be suppressing crypto prices. She speculated that the slight drop in BTC could be due to a programmatic sale but was sceptical about a quick recovery due to a lack of new, ready-to-buy investors.
The second-largest crypto, Ether was recently traded at $1,860, showing a minor 0.5% rise from Monday. Other major altcoins experienced fluctuating fortunes, with XRP rising by 0.3%, and SOL, native crypto of the Solana smart contracts platform, dropping by more than 1%.
Meanwhile, the CoinDesk Market Index, a gauge of crypto markets performance, showed a brief 0.37% increment. The trend indicators for Bitcoin and Ethereum remained neutral, a step down from their previous constant uptrend status.
U.S. stocks concluded on a high note, with Nasdaq Composite and S&P 500 rising by 0.2% and 0.6%, respectively. Investors disregarded the probable rate increase which would take the federal funds rate to a 22-year high ranging from 525 to 550 bps, instead favouring the largely positive second-quarter earnings. However, some strategic profit-taking was expected in anticipation of the Fed’s hawkish stance, following reports of rising house prices, giving the FOMC reason to persist with rate hikes throughout the year.
Source: Coindesk
