Analyst Reports Bitcoin, Ethereum, Dogecoin Decline in Response to Fed’s Jerome Powell’s Hawkish Stance; Believes Bitcoin Aims to Sustain Its Rally
Major cryptocurrencies, including Bitcoin and Ethereum, traded lower on Wednesday evening following hawkish comments from Federal Reserve Chair Jerome Powell. Powell indicated that the central bank could carry out multiple interest rate hikes in the near future at an aggressive pace, citing a robust labor market as the driving force behind these hikes. Bitcoin briefly fell below the $30,000 mark before regaining that level.
During the recent market pullback, Bitcoin surpassed Ethereum and other cryptocurrencies, reaching its highest level of dominance in 26 months. However, the apex coin has remained relatively flat as investors await the Securities and Exchange Commission’s decision on several exchange-traded fund applications.
The global crypto market capitalization stood at $1.16 trillion, representing a decline of almost 2% over the last day. OANDA Senior Market Analyst Craig Erlam noted that Bitcoin has been hovering between $30,000 and $31,000 levels after surging on promising ETF filings. He mentioned that the SEC lawsuits against Binance and Coinbase have been overshadowed by more positive news.
Bitcoin has experienced a 81.7% surge in 2023, outperforming Ethereum, which has returned 53% in the same period. Cryptocurrency trader Michael Van De Poppe suggested that Bitcoin’s dominance chart indicates a desire to continue rallying. However, he noted a resistance at the September 2019 test of the 200-week moving average and Exponential Moving Average, which occurred 10 months before the Bitcoin halving.
Van De Poppe also mentioned that altcoins are showing signs of profit redistribution from Bitcoin’s pump, and market intelligence platform Santiment observed trader optimism emerging as ETFs create more exposure. Altcoins are expected to pick up their game in the near future.
In summary, major cryptocurrencies traded lower as a result of Powell’s hawkish comments, with Bitcoin briefly falling below $30,000. However, the overall market sentiment remains positive, with altcoins expected to gain momentum and Bitcoin’s dominance indicating a desire to rally.
About The Author
