Cryptocurrency market 11/24 CHK: Bitcoin and the market continue to increase slightly when the Fed will slowly raise interest rates

Bitcoin continues its slight upward momentum towards $16,700 over the past 24 hours as the positive news about the Fed interest rates turns positive.

Cryptocurrency Market

With positive news from the Fed when it said it would cool down the interest rate hike, the financial and crypto markets showed signs of improvement. Market data shows that Bitcoin price consistently maintained above $16,500 and peaked in 24 hours at $16,770, with a trading volume of $31.8 billion.

However, Genesis Trading of Digital Currency Group (DCG) is still a name mentioned a lot because of fears that the collapse will adversely affect the whole market. Concerns have spread and many investors have turned to doubts about the future of Grayscale Bitcoin Trust (GBTC), the largest Bitcoin investment institution with over $10 billion worth of assets under management.

The chart of buying and selling pressure on the Binance exchange shows strong resistance just below $17,000. On the buying side, $15,000 is seen as solid support, along with massive buying power around $14,000.

Meanwhile, commenting on the overall state of the crypto market after the FTX crash, analyst William Clemente said that sentiment should not be confused with Bitcoin’s fundamental strength.

“Never seen such a bad mentality. People are gradually giving up, losing hope, depressed. Meanwhile, the fundamentals of Bitcoin have not changed at all,” he admitted.

Despite the bleak sentiment, in the short-term, the altcoin market rallied as Bitcoin maintained its rally above $16,500. Leading the way is Dash (DASH) with a gain of nearly 16%. On the weekly timeframe, the peer-to-peer anonymous cryptocurrency focused on the payments sector has bounced over 25%. Immediately followed by Solana with 15% profit for the day.

Some other tokens such as The Graph (GRT), Klaytn (KLAY), Litecoin (LTC), BNB (BNB), UNUS SED LEO (LEO), Huobi Token (HT), Convex Finance (CVX) … all recorded high levels. increased by more than 10%.

Ethereum (ETH) continues to rally, successfully reclaiming the $1,150 level with a gain of over 4% over the past 24 hours. The 2nd largest project by market cap is attempting to retest the $1,200 level and is currently trading around $1,185.

The Greed and Fear Indicator (FGI) is currently around 22/100, deep in the Extreme Fear zone. Still, it’s still more than twice as high as when the market bottomed locally in August.

Macro factors

The US stock market rallied for the second consecutive session on Wednesday (November 23), after the minutes of the meeting of the US Federal Reserve (Fed) were released showing signs of slowing down. interest rate increase. Crude oil prices fell sharply after news of the Russian oil price ceiling and statistics showing that US gasoline inventories increased more than expected.

At the close, the Dow Jones gained 0.28%, closing at 34,194.06 points. The S&P 500 Index rose 0.59% to 4,027.26 points. The Nasdaq index rose 0.99% to 11,285.32 points.

All three indexes had a strong struggle session after the Fed released the minutes of its monetary policy meeting in early November. The content of the minutes showed that the Fed saw progress in the fight against inflation and wanted to raise interest rates at a slower pace. This means that the Fed will apply shorter rate jumps in hikes for the rest of this year and into 2023.

“A large proportion of the members attending the meeting of the Fed judged that it would be appropriate for the Fed to slow down the rate of interest rate increases soon,” the minutes read. The unpredictable lags and magnitude of the effects of monetary policy action on economic activity and inflation are some of the reasons given for why such an assessment is important. important”.

At the November meeting, the Fed raised interest rates by 0.75 percentage points for the fourth time in a row, bringing the policy rate to the highest level since 2008. Experts are now leaning towards the forecast that the Fed will raise interest rates. interest rates with a 0.5 percentage point jump in the December meeting.

“The market moves all say that investors are worried about one thing only, and that’s the Fed and what the Fed thinks about monetary policy,” said B. Riley Financial spoke. Any information that shifts expectations about the next rate hikes is important to the market, especially in the context of low trading volume as this is a shortened trading week due to Thanksgiving holiday.

US financial markets will be closed for a holiday on Thursday and close early on Friday.

The weekly report from the US Department of Labor showed that the number of initial jobless claims last week was 240,000, higher than the 225,000 forecast by experts in the Dow Jones survey. This result is a sign that the US job market may be weakening – an important basis for the Fed to slow down rate hikes.

Brent crude oil futures in London fell $3.57/barrel, or 4%, to close at $84.79/barrel. WTI oil futures in New York slid 3.5 USD/barrel, or 4.3%, to 77.45 USD/barrel.

A weekly report from the US Department of Energy showed that US gasoline inventories rose by 3.1 million barrels last week, much larger than analysts’ forecast for a 383,000-barrel increase.

“Such an increase in gasoline inventories is a shock, as it suggests that gasoline demand may have peaked, just in time for the holiday season,” said Price Futures Group analyst Phil Flynn. determined.

Oil prices suffered further downward pressure from the news that the price ceiling imposed by the Group of 7 industrialized countries (G7) on Russian crude could be higher than the current market price of Russian oil. A European official revealed on November 23 that the G7 intends to impose a price ceiling on Russian oil transported by sea at $65-60 per barrel.

Meanwhile, the price of Russian Urals crude oil sold to Western European customers is currently trading at $62-63 per barrel, and the price for customers in the Mediterranean region is higher, in the range of 67-68 USD/barrel – according to data from Refinitiv.

Since the cost of oil production is estimated at around $20/barrel, such a price ceiling means that Russia is still profitable to sell oil and this means that the global oil market can avoid a shortfall. more supply.

A senior US Treasury official said that the Russian oil price ceiling is likely to be adjusted several times a year.

The oil market is still concerned about oil demand in China, the world’s largest crude oil importer and struggling with a sharp increase in the number of Covid-19 infections. China’s already strict anti-Covid measures are being tightened in many localities, including the capital Beijing and the financial hub Shanghai.

Gold prices were supported after the Fed released the minutes of its November monetary policy meeting. The content of the minutes showed that the Fed saw progress in the fight against inflation and was looking to raise interest rates at a faster pace. slow down. This means that the Fed will adopt shorter rate jumps in hikes for the rest of this year and into 2023.

The weekly report from the US Department of Labor showed that the number of initial jobless claims last week was 240,000, higher than the 225,000 forecast by experts in the Dow Jones survey. This result is a sign that the US job market may be weakening – an important basis for the Fed to slow down rate hikes.

Support for gold price in this session is also the decline of USD. The Dollar Index this morning fluctuated around 105.7 points, from 107.1 yesterday morning.

Similar to gold, the greenback is also under pressure from the soft signal of the Fed. Gold is priced in USD, so USD depreciation is a beneficial factor for gold prices and vice versa.