Bitcoin (BTC), Ethereum (ETC) Stay Firm Ahead of Possible Fed Rate Hike
Bitcoin and Ethereum traded in the green on Tuesday evening as the global cryptocurrency market cap fell 0.8% to $974.3 billion at press time.
| Coin | 24 hours a day | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 0.3% | -8.7% | $21,214.57 |
| Ethereum ETH/USD | 0.9% | -5.2% | $1,448.63 |
| Dogecoin DOGE/USD | 0.5% | -9.05% | $0.06 |
| Cryptocurrency | 24-hour % change (+/-) | Price |
|---|---|---|
| Qtum (QTUM) | +7.8% | $3.65 |
| OCD (OCD) | +5.3% | $15.42 |
| Ethereum Classic (ETC) | +8.1% | $25.16 |
See also: Best Crypto Debit Card
Why it matters: Risk assets such as stocks and cryptocurrencies continue to be correlated. At press time, major coins were trading higher as stock futures rose.
S&P 500 and Nasdaq futures were up 0.8% and 1.4% respectively at press time as investors digested earnings data from Google’s parent company Alphabet Inc GOOGLE GOOG and Microsoft Corporation MSFTthe Redmond, Washington-based tech giant.
Cryptocurrency investors are also doubtful about the ongoing US Federal Reserveits Open Market Committee meeting, where an interest rate increase is expected.
Currency trader Miad Kasravi tweeted that the Bitcoin mean goes back every time there is an FOMC meeting. The price action of the apex coin tends to reverse before the meeting, according to the charts shared by the trader.
Does the FOMC Matter to BTC?
Tell me, below are all price actions by meeting for 2022.
BTC means reverse every single time.
The next FOMC meeting is tomorrow pic.twitter.com/IusJfnBM21
— Miad Kasravi (@ZFXtrading) 26 July 2022
Michael van de Poppea cryptocurrency trader, described Google’s earnings as “very strong” and said Microsoft’s was also “not bad”.
“Probably [a] sell-off goes into tomorrow’s FOMC meeting,” Van de Poppe said, adding that he expects “green after.”
Very strong earnings from $GOOG and green postal market. $MSFT not bad either.
Selling is likely to occur during tomorrow’s FOMC meeting.
Green after.
All information can be found here: https://t.co/IjEwuqN4G3
— Michaël van de Poppe (@CryptoMichNL) 26 July 2022
On-chain computer company Glass node tweeted that small investors, or shrimpers, with less than 1 BTC holdings have increased their holdings of circulating Bitcoin supply from 5.2% to over 6% since Terra Classic (LUNC) collapsed.
#Bitcoin Shrimp cohort with < 1 BTC has increased its relative stock of circulating $BTC supply from 5.2%, to over 6.0% since the LUNA collapse.
This corresponds to 156k $BTC added to the balances of prawns in the chain as a whole. pic.twitter.com/MNHTWIQtbe
— glassnode (@glassnode) 26 July 2022
Going forward, investors will focus on earnings from Apple Inc AAPL and Amazon.com, Inc AMZN, which will be released on Thursday. Also on Thursday is US GDP data for the second quarter.
“If earnings and US GDP come in worse than expected, we could see increased fear in the market as recessionary concerns intensify,” GlobalBlock analyst wrote Marcus Sotiriou in a memo, seen by Benzinga.
Read next: If You Invested $100 Each In Bitcoin, Ethereum Last Time The Fed Raised Rates, Here’s How Much You’d Have Now
