Cryptos extend losses before Fed and ECB announcements
Cryptos extend losses before Fed and ECB announcements
- The European Central Bank holds rare unscheduled sessions because the market conditions deteriorate
- S&P and Nasdaq remain stable, while BTC and ETH fall before the interest rate is announced
The withdrawal to the cryptoma markets continued on Wednesday, as a company dismantled personnel, while investors estimate the damage through Celsius' retreat and the obvious bankruptcy of the long-standing hedge funds Three Arrows Capital for digital assets.
The Federal Reserve is expected to announce an expected rate increase of 0.75 percentage points on Wednesday afternoon after the end of its two -day monetary policy session. The European Central Bank, whose session was not intended, gave a said, said, It would "apply flexibility" to counteract the increasingly turbulent markets.
"It has become very clear that the central banks have to be very aggressive in order to counteract the increasing price pressure worldwide, and that the likelihood of recessions has increased," wrote Craig Erlam, senior market analyst at Oanda, on Wednesday in a message. "The stagflation has not yet been there, but the associated risks have increased significantly in the past few months, which makes the reactions of the central banks all the more critical."
Many other interest rate increases are required at short notice in order to get a certain level of control over control, Erlam said - and the markets do not react well.
Bitcoin sank towards $ 20,000 in the early Wednesday, while Ethereum slipped closer to $ 1,000. The technology-heavy Nasdaq and the S&P 500 both acted a little higher before the press conference of the Fed chairman Jerome Powell, which according to Erlam signals that the market has largely priced an increase of 75 points.
"There is still a large gap between nominal interest rates and real interest, so the Fed and other central banks have much more scope in the coming months to rise," said Mikkel Morch, Executive of the Digital Asset Hedge Fund Ark36. "Realistically, investors cannot expect risk systems to have a more sustainable upward trend until the Fed swings."
The risk aversion will probably not dissolve so quickly according to Erlam's assessment.
"The appetite for risk was wiped out and the days of extremely low interest rates are behind, there is no longer the same speculative mood as when Bitcoin exploded," said Erlam. "There may still be belief that Bitcoin can thrive in the future, but something that now offers little beyond speculative rally will continue to fight. Especially when we see headlines like the one around Celsius and Binance."
. .
The Post Cryptos Extend Losses Ahead of Fed, ECB Announcements is not a financial advice.
Kommentare (0)