Dovish Fed Minutes Sees Cryptocurrency Market Lose $11 Billion in 5 Hours

[Lmaooo]

Highlights:

    * Federal Reserve is close to the end of neutralizing interest rates after December hike.
    * US stocks, forex instruments, and Gold extended gains Wednesday, but correcting Thursday.
    * Bitcoin, Ethereum, XRP and the rest of the crypto market react negatively.

Federal Reserve released the minutes of its December meeting which revealed that they would follow a wait-and-watch approach towards their interest rate hike plans. The US central bank suggested in December moderate rate hikes (up to 2.8 percent) but preferred to implement them only if warranted. The Federal Open Market Committee (FOMC) confirmed that their rates were close to the range of its long-term neutral interest rate – implying a pause in their hikes.

At the same time, the Fed highlighted that market tightening and global economic slowdown have made it difficult to assert future policy making.


US Stocks, Gold Extend Gains – Forex Corrects

The pause of rate tightening cycle sent the US Dollar to its three-month low. The quoted instruments against the greenback naturally took the news well, with mainstream US stocks, forex pairs, and precious metals noticing an interim surge. The Dow Jones closed Wednesday at 91.67, up 0.39 percent, while the S&P 500 advanced 0.41 percent and the Nasdaq Composite Index rose by 0.87 percent. It was the fourth consecutive upside session for the said markets.

Gold price opened Thursday on a positive note. The spot price was up 0.2 percent at $1,289.50 per ounce as of 1200 GMT. US gold futures rose 0.4 percent to $1,297.20 per ounce.

The Forex market is now following a remedial course. The EUR/USD corrected lower towards 1.1500 from overbought levels while the GBP/USD also edged down at 1.275 from its morning opening rate. Poor Asian data hampered the Japanese Yen from benefitting from the dovish Fed minutes. The USD/JPY rate this Thursday established fresh weekly lows, now inside 107.80-107.75 area from 109.00-region.

CCN | https://www.ccn.com/dovish-fed-minutes-sees-cryptocurrency-market-lose-11-billion-in-5-hours/

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[randythered]

Interest rates not increasing should increase investment in to alternative investments than bonds or savings so in theory cryptocurrencies prices should increase on this news. The only reason that could be otherwise is if people are associating the halt on interest rate hikes with a more negative outlook for the economy and therefore spending/investment.

[el kaka22]

People need to realize that bitcoin and crypto doesn't move according to FED at all, it doesn't matter what FED does and how it does it for crypto because we are a different market than them and we move according to our sells and buys instead of their moves. A fed interest could be insanely higher or lower and it wouldn't change anything in the bitcoin market.

It is the constitutional money that changes bitcoin when FED moves, which means FED does have an indirect effect but not because whatever FED does but because how people react to what FED does. If people stop caring about FED and what they do than bitcoin could be totally clear from it considering the whole reason for Bitcoins creation was to have a decentralized money and FED is the CENTER of money, so we need to have people who hate FED and move to crypto instead of people who reacto FED and change bitcoin positions.

[peter0425]

This is just another FUD I think. How can they say that accurately though? hehehe, yes, they just wanted to created panic here and usually though, when someone opens their mouth here and says that the price will go down, crypto moves on the opposite direction, lol, so for those who are reading it, don't be alarm and do not panic.

[5ensei]

The price has fallen again today, it is hard to see where the bottom is. $3500 must be a hard floor to breach as it is too close to the GTFO price resulting in a death spiral that could destroy bitcoin as an investment. Recovery is tomorrow I guess

[tmfp]

Why do so many IronX signature carriers repost CCN articles?
Are you all the same account?

The article title, implying that the two events are linked, is not elaborated on in the text which is not surprising as the FED meeting was two weeks before the sell off.
Pure clickbait.