Cryptocurrency market on September 22: The Fed announced a new interest rate, BTC and ETH dump pump continuously

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2022-09-27 08:52:00

Bitcoin made a false bullish signal right before the Fed meeting, and then there was a $1,000 dump.

Cryptocurrency Market

Market data shows Bitcoin price hitting $19,600 before creating a long red candlestick to $18,867. As of now, Bitcoin price is trading around $19,179 with slight recovery momentum. The 24-hour trading volume hit a spike of $51.8 billion, up 50.4%.

Bitcoin price movement on September 22, 2022

The 30-day average volatility in August 2022 has fallen by 20% from the 80% observed in June. In total, August 2022 long liquidations only touched $5 billion, which is low. more than half compared to June ($10.8 billion). Total short liquidations in August also decreased significantly, with $3.5 billion compared to more than $6.6 billion in June.

Additionally, the network also saw a 4% drop in the average number of daily active addresses. Meanwhile, daily transactions were largely unchanged from the previous quarter. In fact, the network continues to record more than 250,000 transactions daily. However, the average transaction fee has dropped by about 21% to $1.4.

The total of derivative orders liquidated in the past 12 hours is more than 290 million USD, mainly in ETH and BTC.

The price of ETH went with Bitcoin as it went up and down continuously over the past 12 hours. The market’s largest altcoin bottomed out at $1,234 before recovering slightly back into the $1,287 region. The 24-hour trading volume grew by 60% and reached a value of $22 billion.

Currently, it has just been reported that the Bank of Japan has said that it will intervene in stabilizing the exchange rate of the Japanese Yen. USD quickly plummeted, erasing all gains because of the Fed’s interest rates yesterday, and the cryptocurrency market recovered again.

Top 10 Altcoins leading the market on September 22, 2022

At the time of writing, BNB +1.42%, XRP +6.58%, ADA +1.3%, SOL +2.28%. Projects such as EOS (EOS), UNUS SED LEO (LEO) have recorded a drop of more than 10% on the day. Other tokens in the top 100 such as Curve DAO Token (CRV), 1inch Network (1INCH), Helium (HNT), Monero (XMR), Axie Infinity (AXS) also lost more than 5% of their previous value and then recovered again. .

Market sentiment was not much volatile as interest rates were within expectations. The Greed and Fear Index (FGI) is still located in the Extreme Fear zone at 22 points.

Cryptocurrency Market FGI Index September 22, 2022

Macro factors

Fed meeting offers 0.75% interest rate hike

The US stock market fell sharply in the session on Wednesday (September 22), after the US Federal Reserve (Fed) raised interest rates by 0.75 percentage points and is forecast to continue to raise interest rates. big jump in the near term to combat the escalation of inflation. Oil prices also plummeted due to concerns that higher interest rates will cause an economic recession and “suffocate” energy demand.

At the close, the Dow Jones index slid 522.45 points, or 1.7%, to 30,183.78 points. The S&P 500 index “evaporated” 1.71%, to 3,789.93 points. The Nasdaq index lost 1.79%, to 11,220.19 points.

With this drop, the S&P 500 has lost more than 10% of its points over the past month and has fallen 21% since its 52-week high. Before the Fed’s rate decision, stock prices on Wall Street reflected an aggressive tightening campaign by the world’s most powerful central bank that has the potential to plunge the economy into recession.

Stocks edged up sharply as traders mulled over the Fed’s rate decision and Fed Chair Jerome Powell’s latest statements in the press conference that followed. At the session’s peak, the Dow Jones rose 314 points, but this gain was lost almost immediately.

The Fed’s 0.75 percentage point jump in interest rates was not outside the market’s expectations. The Fed is expected to raise interest rates “dramatically” to 4.6% to combat persistent high inflation in the US. That’s the threshold at which the Fed is expected to stop tightening. The Fed also signaled that it will continue to raise rates with big jumps in the near future to bring interest rates to 4.4% by the end of this year and by the end of 2023 to reach the maximum interest rate mentioned above.

The rate increase of the Fed over the years

The Fed’s projections suggest that the US economy will suffer some damage in this fight against inflation, but Mr. Powell meant that those are the “side effects” that Americans must accept. because otherwise, high inflation will cause worse consequences.

Mr. Grahn compared the current aggressiveness of the Fed to the central bank’s policy under Chairman Paul Volcker – who raised interest rates aggressively to combat double-digit inflation in the US four decades ago. allow the economy to fall into recession. However, Mr. Grahn said that the Fed can still “turn the wheel” on monetary policy in the near future if necessary.

Stock prices on Wall Street tried several times to recover this session but failed. After 10 years of being used to super-low interest rates, investors still have not been able to adjust their portfolios properly to the new situation, according to Carol Schleif, deputy investment director of wealth management company BMO.

Before the US session, European stock markets closed with a gain of 0.9% of the Stoxx 600 index, although the session sometimes slipped to the bottom since the beginning of July. With the sharp decline of US stocks, only The MSCI All Country World Index of world stocks fell 1.55% on Wednesday.

Yields on 10-year US Treasuries spiked after the Fed’s decision, but turned lower after that, to 3.516% by the end of the session. Yields on 2-year US Treasuries sometimes reached 4.123%, the highest since October 2007, then fell to 4.0506%.

The two-term US Treasury yield curve continues to invert, reflecting the possibility of the US economy falling into a recession in the next 1-2 years.

The Fed’s interest rate decision sent the dollar up sharply, with the Dollar Index up more than 1%. The Euro depreciated nearly 1.3%, to 0.9843 USD for 1 Euro.

Brent crude oil futures in London fell $0.79/barrel to $89.83/barrel, the lowest closing level in two weeks. WTI crude oil futures in New York lost 1 USD/barrel, to 82.94 USD/barrel, the lowest closing level since September 7.

The cryptocurrency market has generally stabilized following the Fed’s rate decision, with Bitcoin prices mostly flat below $19,000. At more than 6 am this morning (September 22) in Vietnam time, the price of Bitcoin according to data from Coinmarketcap.com stood at 18,491 USD, down 2% compared to 24 hours ago. However, interest rate concerns are one reason why the price of this virtual currency has dropped by nearly 9% in the past week.

The world gold price dropped sharply this morning (September 22) due to the pressure from the tough monetary policy policy of the US Federal Reserve (Fed). The domestic price of gold bars was “immovable”, making the difference between the retail price of gold bars and the converted international gold price increased to nearly 19 million dong/tael.

At nearly 10 a.m. Vietnam time, the spot gold price in the Asian market fell 14.5 USD/oz compared to last night’s closing session in the US, equivalent to a decrease of nearly 0.9%, standing at 1,660.2. USD/oz – according to data from the Kitco site. This is the lowest price of gold in the world since April 2020.

Prior to that, gold prices rose in Wednesday’s session in the New York market. At the close, spot gold price increased by 8.3 USD/oz, or more than 0.5%, to close at 1,674.7 USD/oz.

The Dollar Index rose more than 1% on Wednesday, hitting a new 20-year high. The Euro depreciated nearly 1.3%, to 0.9843 USD for 1 Euro. This morning, Dollar Index fluctuated around 111.7 points, from 110.2 points yesterday morning.

Yields on 10-year US Treasuries spiked but turned lower after that, to 3.516% by the end of Wednesday’s session. Yields on 2-year US Treasuries sometimes reached 4.123%, the highest since October 2007, then fell to 4.0506%.

The world’s largest gold exchange-traded fund (ETF) SPDR Gold Trust net sold another 1.1 tons of gold on Wednesday, reducing its holdings to nearly 952.2 tons. In the first 3 sessions of the week, the fund released about 9 tons of gold. Within half a month, the fund has net sold about 22 tons of gold.

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