The Fed Is Getting More Aggressive To Make Cryptocurrencies Collapse
Navigasi Gam - The prices of major cryptocurrencies tended to correct in trading Friday (22/4/2022) morning Indonesian time, as investors responded negatively to the statement by the chairman of the United States (US) central bank regarding further monetary policy.
Launching data from CoinMarketCap at 09:00 WIB, Bitcoin fell 2.7% to a price level of US$ 40,545.3/koin or equivalent to Rp. 582,232,375/coin (assuming an exchange rate of Rp. 14,360/US$), Ethereum fell 3, 18% to the level of US$ 2,999.58/coin or Rp. 43,073,969/coin.
As for other alternative digital coins (tokens) (altcoins), namely XRP, which fell 3.31% to US$ 0.732/coin (Rp 10,512/coin), Solana fell 4.51% to US$ 102.12/coin (Rp 1,466. 443/coin), Terra slipped 3.4% to US$ 92.22/coin (Rp 1,324,279/coin), and Avalanche dropped 4.1% to US$ 75.81/coin (Rp 1,088,632/coin). ).
Here's the movement of the 10 major cryptocurrencies today.
The crypto market, which had previously recovered, today turned back towards the correction zone, following the global stock market following the statement by the chairman of the US central bank (Federal Reserve / The Fed) regarding future monetary policy.
Investors in risk assets markets, both in stock and crypto markets, tended to respond negatively to Fed chairman Jerome Powell's remarks suggesting that a bigger rate hike may be at the next monetary policy meeting, in this case the May issue.
"It's time to move a little faster in raising interest rates. I also think there is something to be said for the front-end loading any accommodations that deem appropriate. ... I would say 50 basis points will be discussed for the May meeting," Powell said. in the International Monetary Fund (IMF) Forum.
Prior to Powell's comment, San Francisco Fed President Mary Daly, Chicago's Charles Evans, and Atlanta's Raphael Bostic had said they saw the need to raise interest rates to tame inflation, but didn't want to stop the expansion.
Daly acknowledged that tighter policies could trigger a mild recession. St. Louis Fed President James Bullard said earlier in the week that he was open to an option for a 0.75% increase at the May meeting to help curb inflation, which is now the highest in 40 years.
On the other hand, investors also responded negatively to the soaring yield of 10-year US Treasury bonds to the level of 2.9%.
At 5:05 p.m. US time, the 10-tenor Treasury yield jumped 7.2 basis points (bps) to 2.908%. This level is the highest level since 2018.
Although Bitcoin and most cryptocurrencies have fallen again, some alternative cryptos (altcoins) are still superior to Bitcoin today.
Like Tron's TRX tokens which jumped 14% today and The Graph's GRT tokens also shot up to 6%.
On the other hand, the world's largest crypto exchange company, Binance, has deactivated the accounts of its main client in Russia, as a result of the economic sanctions imposed by the European Union on Russia.
Binance informed its users in Russia, where both individual and corporate users with cryptocurrencies worth more than 10,000 euros (US$ 10,900) will be barred from making new deposits or trades.
However, affected clients can still withdraw their funds.
Binance, along with Coinbase Global Inc and Kraken, have rejected calls from Kyiv for a complete ban on Russian users after Russian President Vladimir Putin carried out his military aggression in Ukraine.