Major coins traded in negative territory Wednesday night as the global cryptocurrency market cap declined 1.8% to $999.6 billion as of 9:31 p.m. EDT.
| coin | 24 hours | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC/USD | -1.5% | -2.7% | $20,225.41 |
| ether ETH/USD | -3.4% | -2% | $1,534.63 |
| Dogecoins DOGE/USD | -8.1% | 80.5% | $0.13 |
| cryptocurrency | 24-hour % change (+/-) | Price |
|---|---|---|
| working (AR) | 37.4% | $14.09 |
| Litecoin (LTC) | 15.3% | $63.65 |
| mine (MINA) | 15.3% | $0.78 |
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Why it matters: Bitcoin, etherand Dogecoins all traded lower after the Federal Reserve’s latest rate hike caused risk assets, including equities, to plummet.
The tech-heavy Nasdaq closed 3.4% lower on the day, while the S&P 500 ended Wednesday’s session down 2.5%. At the time of writing, US stock futures were flat.
On Wednesday, every 12 Federal Committee of the Free Market Members voted to raise the key interest rate by 0.75% to a range between 3.75% and 4%. This was the fourth such rate hike in a row in the US Federal Reserve’s fight against inflation.
Edward Moyaa senior market analyst at OANDA, noted the dovish part of the Fed’s statement, in which the central bank said they take into account cumulative monetary tightening, the lags with which monetary policy affects economic activity and inflation, and economic and fiscal policies will financial developments.
“Bitcoin continues to trade above $20,000 as Fed confirmed what markets were hoping; A tightening downshift is imminent. The Fed’s initial response was fairly strong for most risky assets, but it didn’t last as the central bank will remain dependent on inflation data going into the next round,” Moya said in a note seen by Benzinga.
“Inflation has been high for 18 months and the Fed will remain committed to using its tools, which means we won’t get the green light on risky assets until inflation has come down sharply.”
Justin Bennett noted that the dollar index still has “bullish flag potential” and is expected to close above the 111.80 level.
“Those who want an extended rally [crypto] need the DXY back below that 111.50-111.80 area in the coming days,” said the trader.
So far the $DXY Bull flag potential still exists and it is expected to close above the 111.80 area.
If you fancy an extended rally #crypto DXY needs to dip back below this 111.50-111.80 area in the coming days.
Until then, 113.60 is in play. https://t.co/I2WhYnekqW pic.twitter.com/q4iWgR4kld
— Justin Bennett (@JustinBennettFX) November 2, 2022
Dogecoin, which rose sharply in the past week afterwards Elon Musk‘s Twitter takeover was seen as a cooling off on Wednesday night.
According to CoinMarketCap data, the meme coin’s 24-hour trading volume fell 41.3% to $4.6 billion. At the time of writing, over 24 hours, Coinglass data showed that $23.8 million worth of DOGE was liquidated.
Serhii ZhdanovCEO of cryptocurrency trading platform EXMOsaid in a note that DOGE traded between 6 and 9 cents for almost three and a half days, accounting for 20% of the exchange’s weekly trading volume.
DOGE/USD volume distribution between 26th October and 1st November – courtesy of EXMO
“On October 29, there was a strong jump in price: DOGE rose by more than 50% in 8 hours. This is the main reason why there was relatively little trading volume between $0.09 and $0.12. Excitement in the market started with a surge above $0.12,” Zhdanov said.
The second half of the week saw trades mostly between 12 and 15 cents and this period accounted for 57% of weekly trading volume.
market intelligence platform, moodnoticed that Litecoin (LTC) is “currently on a good run” and detached from the cryptocurrency suite.
“We have seen that the number of addresses is 1,000 or more [LTC] has been growing rapidly since mid-June, and [LTC’s] price vs. [BTC] is up +51% since June 12.
#Litecoin is currently on a nice run and is temporarily detached from the #crypto Pack. We have seen that the number of addresses is 1,000 or more $LTC has been growing rapidly since mid-June, and $LTCthe price vs. $BTC is up +51% since June 12. https://t.co/uFXYNcnsRP pic.twitter.com/PASMdaezCD
— Santiment (@santimentfeed) November 3, 2022
Santiment noted that 314 new Shark and Whale LTC addresses have been created since May 27. At the time of writing, LTC was trading 16% higher at $63.80. For the week, the coin is up 12.9%. It should be noted that LTC and DOGE can be mined together.
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