Cryptographic markets experienced volatility on Wednesday while the president of the federal reserve Jerome Powell The Bellician remarks shaken merchants with leverage.
Liquidations have increased to more than $ 200 million in an hour on all digital assets, because Bitcoin (BTC) fell below $ 116,000 while Powell spoke, according to Corglass data.
The central bank has left unchanged interest rates, Powell insisting on the potential inflationary pressures of the prices, while two officials dissident in favor of the reduction.
Read more: Bitcoin falls below $ 116,000 while Jerome Powell delivers beautiful comments
Later in the session, BTC rebounded above $ 117,000, still 0.8% decreasing during the day and negotiating at the lower end of its tight range of three weeks. The ether (ETH) slipped up to 3%, then given to $ 3,750, modestly lower (-0.6%) in the last 24 hours.
Altcoins first displayed more steep drops, but quickly rebounded. Solana’s Sol (soil), Avix Avalanche (AVAX) and the hyperliquid media threshing tokens were down 4% to 5% before suffering losses, while Bonk and Pengu plunged 10% each before bouncing.
A traditional market verification has seen Meta (META) and Microsoft (MSFT) respectively displaying solid quarterly benefits, raising stocks of 10% and 6%, respectively, after regular negotiation hours.
“The market is starting to think more and more to think that the Fed may cause the curve,” said Matt Mena, an analyst at Digital Asset from 21Shares, in a market note.
“The PCE print last week has marked the second soft reading in a row, and consumer spending is weakening,” he wrote. “With unemployment, higher and real yields are still restrictive, maintaining such tight political risks that slow down.”
The current configuration recalls the last quarter of 2023, said Mena, with the softening of inflation, the increase in political volatility and a Fed constrained by late indicators “.
He said that “the scene is defined” so that the Fed pivots reduced prices, which could drive the BTC to $ 150,000 by the end of the year.
