NewsletterJust In: US Dollar Shows Signs Of Weakness, Time For A Crypto Bull Run?
Following the Fed’s interest rate hike announcement on Wednesday, the dollar fell sharply by 0.72% while Bitcoin rose 4.22%. On widely expected lines, the Fed hiked interest rate by 75 basis points. The Federal Open Market Committee said gains in labor market have been robust recently. It added that the unemployment rate remained low. Reacting to the decision, the cryptocurrencies reacted positively with an increase of 4.22% and 5.33% for Bitcoin and Ethereum respectively. This raises hopes in the crypto community on the possibility of a crypto bull run.
U.S. GDP Figures To Reveal More On State Of Economy
On the other side, the second quarter GDP figures is next big event scheduled for tomorrow. Not just crypto community, the financial markets would be eagerly looking for the U.S. GDP numbers. The GDP figures could bring a reality check for the U.S. economy, while also setting the tone for markets worldwide.
The dollar index stands at $106.341, down −0.81%, according to TradingView. The drop in the U.S. dollar could be a result of a the interest rate hike, against higher expectations in the market. When CoinGape asked what the fall in dollar means, one Mati Greenspan reacted that the hike was below market expectations. “Markets were expecting a larger hike.”
Will The Dollar Weakness Lead To A Crypto Bull Run?
Prior to the FOMC decision, it was predicted that Bitcoin price could rise above $22,000 support level in short term. Thanks to exhaustion in the recent pullback, it was expected that the bullish trend could take over. A potential retracement to the resistance level of $22,490 was predicted before a swing to over $24,000 level. As of writing, Bitcoin was trading at $22,819.77, up 9.16% in the last 24 hours, according to CoinMarketCap. At one stage after the Fed rate hike announcement, Bitcoin went up by over 4% in the space of just an hour.
On the other side, Ethereum (ETH) is up by a staggering 16.63% in the last 24 hours. As of writing , ETH price stands at $1,591.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Expert Predicts Further Downside For Bitcoin As Fear and Greed Index Drops To 10
- Solana and XRP ETFs Attract Fresh Inflows Even as Crypto Market Falls
- BLS to Release Jobs Report on Nov. 20 as Uncertainty Over Fed Rate Cut Persists
- JPMorgan calls Bitcoin Price Bottom, Predicts It Will Challenge Gold Next Year
- Zcash to Surpass XRP? Arthur Hayes Makes Bold Claim Amid ZEC’s 45% Rally
- Litecoin Price: With a 12% Surge and Pearson BTC Correlation at –0.01, Is LTC Gearing Up for $125?
- What’s Next for Chainlink Price After 53.87 Million Tokens Accumulated
- What the New Bitcoin Model Predicts About a Possible $200K BTC Price Target?
- Zcash Price Soars 45%: Here’s Why
- Bitcoin Price Pattern Points to a Crash to $62k as Fed Cut Odds Fall to 54%
- Zcash Price Defies Market Crash: Will Shrinking Exchange Netflows Keep ZEC Rallying?
