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- The Fed is expected to announce an increase in interest rates by 25 basis points, as Analysts predict.
- The Ukraine-Russian crisis continues while diplomats from both countries hold the fourth round of talks. Meanwhile, China’s latest lockdown due to a new variant also weighs down on different assets.
- According to the Bitfinex Trading Team, Bitcoin has yet to cover a long journey before it becomes immune to the market sentiment.
In its first hike after 2018, the FED is likely to raise rates by 25 basis points on Wednesday. On Tuesday, as investors are positioning themselves ahead of the announcement of the U.S. Federal Reserve’s policy, most cryptocurrencies, including Bitcoin, were traded slightly higher.
The increased interest rates by the Fed could result in more compressed financial conditions that over the past year have backed the rally in speculative assets. Analysts also expect the Fed to announce a plan for reducing its almost $9 trillion balance sheet.
Meanwhile, diplomats from Russia and Ukraine continued the fourth round of talk; however, they haven’t yet reached an agreement on a ceasefire.
The Bitfinex Trading Team also talked about how the Bitcoin price will react to all the situations happening together on a global scale right now. Here is the Bitcoin price from the Bitfinex Trading Team:
“Bitcoin has recovered some of its losses as global markets remain in a bearish mood. The prospect of a Federal Reserve interest rate hike, the ongoing tragedy of the Russia-Ukraine war, and China once again battling Covid are all weighing on trader sentiment across different asset classes. A rout in Chinese stocks shows once again how the global pandemic can violently move markets. Meanwhile, oil has dropped below US$100, extending its recent downward trend amid renewed selling pressure. Bitcoin clearly has a long way to go before being immune to market sentiment. Nevertheless, the technological innovation of the digital token ecosystem remains at a frenetic pace.”
Bitfinex is a large cryptocurrency exchange that supports a large ecosystem of digital assets, products, and trading options, including paper trading, margin accounts, derivatives, spot trading, and much more. Bitfinex is a peer-to-peer exchange that was started in December 2012. The Bitfinex trading team, on the other hand, consists of experienced individuals passionate about crypto.
While countries such as the U.S. and Canada have put a ban on oil imports from Russia for its invasion of Ukraine. Meanwhile, the U.K. imports only about 6% of oil from Russia, meaning it does not rely much on it for the commodity supply, unlike other European countries, and has announced it intends to discontinue it.
Up until now, Russia has been the third-largest oil exporter. After the ban, the demand for oil from other producers has increased, resulting in higher prices. Since agreements are made in dollars, oil prices are determined by the price of crude oil and the dollar exchange rate.
On the other hand, China has announced the latest lockdown as it again battles with Covid.
Amidst all these events, it is interesting to note how Bitcoin and other cryptocurrencies in the market are reacting. Some analysts believe that selling pressure will reduce in crypto and other speculative assets such as equities.
At the time of writing, the flagship currency was trading at USD 39,070.70, up 0.84% in the past 24 hours.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
