The two largest cryptocurrencies traded in opposite directions 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|
|UNUS SED LEO (LEO)||+4.5%||$4.04|
Why It Matters: Cryptocurrencies traded lower in tandem 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 said rate hikes to date haven’t made enough of a dent in inflation. Meanwhile, weekly initial jobless claims stayed light at around 220,000, meeting consensus estimates.
“Fed’s Bullard noted that the policy rate is not yet ‘sufficiently restrictive’. He also highlighted a dovish scenario that could take the funds rate to 5% and a hawkish rate at 7%. Bullard said he's targeting a minimum of another 125 basis points in rate hikes, which would bring the target range to 5.00-5.25%,” said OANDA Senior Market Analyst Edward Moya, in a note seen by Benzinga.
“Cryptos are weakening as risk appetite just left the building. Today’s weakness is mainly attributed to exhaustion with the bear market rally that has powered stocks,” said the analyst.
“A lot of bad news has been priced in so it might take another downfall of a major crypto company or a de-risking movement on Wall Street to take Bitcoin below its recent low.”
The next Federal Reserve policy meeting is scheduled in 26 days' time for Dec. 13-14. According to the data garnered from the CME FedWatch Tool, 80.6% of interest rate traders anticipate a 50 basis points hike in the December meeting.
Justin Bennett tweeted that “anyone hoping for a pivot or even a pause in rate hikes will be disappointed.” The trader said, “The Fed will hike until something breaks.”
Meanwhile, the cryptocurrency market continues to assess the downfall of Sam Bankman-Fried-led FTX and Alameda Research.
Cryptocurrency trader Michaël van de Poppe said, “That entire story of FTX using customer funds to buy properties, but also that he's lending money towards himself. It's mental. But starts to explain how $8B is all of a sudden completely gone.”
A lead on-chain analyst with Glassnode said that all the Bitcoin which flowed into exchanges since Jan. 2018 has “now been withdrawn.”
“Self-custody and spot-driven [Bitcoin] markets are back on the menu,” said the analyst.
With #Bitcoin simply flooding out of exchanges, we now have a ~5yr high in Sovereign Supply of 87.7% of the total.— _Checkɱate (@_Checkmatey_) November 18, 2022
All $BTC which flowed into exchanges since Jan 2018, has now been withdrawn.
Self-custody, and spot driven #Bitcoin markets are back on the menu. pic.twitter.com/Kqr36SBBJC
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