The two largest crypto currency traded in the opposite direction Thursday evening as the global cryptocurrency market cap shrunk 0.3% to $837.4 billion at 8:11 p.m. EST.
|Cryptocurrency||24-Hour % Change (+/-)||price|
|ONE BUT TIME (LEO)||+4.5%||$4.04|
Why It Matters: Cryptocurrencies traded down in line with stocks as the bear market rally on Wall Street ground to a halt. The S&P 500 and Nasdaq ended Thursday 0.3% and 0.35% lower, respectively.
On Thursday, St. Louis Federal Reserve President Jim Bullard he said the price increase until now has not been done enough with a dent in inflation. Meanwhile, weekly initial jobless claims remained flat at around 220,000, meeting the consensus estimate.
“The Fed’s Bullard said that policy rates are not yet ‘restrictive enough’. He also highlighted a dovish scenario that could take the funds rate to 5% and a hawkish rate at 7%. Bullard said that he is targeting at least 125 basis points in rate hikes, which will bring the target range to 5.00-5.25%,” said OANDA Senior Market Analyst. Edward Moyain a note seen by Benzinga.
“Cryptos weakened because risk appetite has just left the building. Today’s weakness is mainly due to fatigue and the bear market rally that has moved stocks,” said the analyst.
“A lot of bad news has been priced in so it could take a major crypto company decline or a de-risking move on Wall Street to take Bitcoin below its recent low.”
The next Federal Reserve policy meeting is scheduled in 26 days for December 13-14. According to the data garnered from the CME FedWatch Tool, 80.6% of interest rate traders anticipate a 50 basis point hike at the December meeting.
Screenshot From CME Group’s Fed Watch Tool
Justin Bennett tweeted that “anyone expecting a pivot or pause to increase speed will be disappointed.” Traders say, “The Fed will hike until something breaks.”
I keep saying it, but anyone hoping for a pivot or even a break in speed hikes will be disappointed.
The Fed will walk until something breaks. https://t.co/ruftmCLp0H
– Justin Bennett (@JustinBennettFX) November 17, 2022
Meanwhile, the cryptocurrency market continues to assess the downfall of Sam Bankman-Fried– LEDs FTX and Alameda Research.
Cryptocurrency traders Michael van de Poppe said, “That’s the whole story of FTX using customer funds to buy properties, but also that he borrow money from her. It’s mental. But it begins to explain how $8B suddenly disappeared.
It’s the whole story of FTX using customer funds to buy property, but also that he lent money to himself.
But first explain how $8B suddenly disappeared.
– Michael van de Poppe (@CryptoMichNL) November 17, 2022
A lead on-chain analyst with Kacanode said that all the Bitcoin that flowed into the exchange since January 2018 has “now been withdrawn”.
“Keep yourself and be driven by the place [Bitcoin] the market is back on the menu,” said the analyst.
and #Bitcoin just flooded out of the exchange, we now have ~ 5yr high in Sovereign Supply of 87.7% of the total.
All $BTC which flowed into the exchange since Jan 2018, has now been withdrawn.
— _Checkɱate (@_Checkmatey_) November 18, 2022