Bitcoin tries to bounce back from Fed meeting but falls short... Bitcoin retraces gains after recovering $59K
The cryptocurrency market attempted to rebound as it digested the results of the Federal Reserve's monetary policy meeting in New York City on the 1st, but it proved to be insufficient and retreated back to pre-rebound levels. Bitcoin briefly regained $59,000 and Ethereum $3,000, but failed to maintain momentum and retraced its gains.
The market, which had feared the worst ahead of the Fed meeting, with hints of a possible rate hike, initially showed some relief at the outcome of the meeting, but came under pressure again as the negative factors, including the prospect of prolonged high interest rates and continued outflows from Bitcoin spot ETFs, were not addressed.
The Fed kept interest rates unchanged at the meeting, reaffirming its stance that it will not lower rates before it is confident that inflation is falling toward its target, but decided to slow the pace of quantitative tightening (QT) from June. Fed Chairman Jerome Powell said in a press conference that the Fed's next move will not be a rate hike and that it will be prepared to respond if the labor market weakens.
Powell's press conference, which followed the release of the Fed's policy statement, was met with a positive response from both crypto and traditional asset markets. New York stocks rallied and Treasury yields plunged. The dollar also fell. Later in the day, however, stocks gave back some of their gains, and the crypto markets nearly retraced their losses.
“Rising real interest rates have likely supported the dollar over the past month and weighed on bitcoin,” said Jack Fandle, head of research at Grayscale Investments. “The FOMC statement expressed concerns about inflation but did not rule out a rate cut,” he said. “Expectations of future rate cuts will likely support Bitcoin price and the crypto market more broadly,” he said.
- Cryptocurrency market capitalization regains $10 billion during New York City hours.
At 3:45 p.m. New York time, the cryptocurrency market capitalization was $2.16 trillion on CoinMarketCap, down 1.18% from 24 hours earlier. It's up $10 billion from the start of the day. The crypto market's 24-hour trading volume increased 24.02% to $104.6 billion. Bitcoin dominance was 52.4% and Ethereum dominance was 16.6%.
At this time, Bitcoin was trading at $57,467.43 on CoinMarketCap, down 4.31% from 24 hours earlier. The day's low was recorded at $56,555.29. Bitcoin is experiencing a correction after hitting an all-time high of $73,750.07 on March 14th. Ethereum retreated 0.75% to $2933.56. The day's low was $2815.92. Ethereum's all-time high was $4891.70 on November 16, 2021. The other altcoins in the top 10 market capitalization have seen mixed results compared to 24 hours ago. BNB is down 3.43%, Dogecoin is down 1.94%, and Toncoin is down 4.16%. On the other hand, Solana is up 5.80%, XRP is up 4.03%, and Cardano is up 3.54%. - Cryptocurrency futures mixed... US Treasury yields and the dollar fall
Bitcoin futures listed on the Chicago Mercantile Exchange (CME) are down 1.14% at $58,725, the June contract is down 0.77% at $59,325, and the July contract is down 0.68% at $59,875. Ethereum's May contract is up 1.38% at $2,970.00 and the June contract is up 1.59% at $2,997.00. The dollar index, based on Wall Street Journal data, was down 0.19% at 106.02. The yield on the 10-year U.S. Treasury note retreated 5.9 basis points to 4.628%. - U.S. Bitcoin ETFs saw net outflows of $161.6 million on Tuesday... 5th consecutive day of negative flows
According to Farsighted Investors, there were net outflows of $161.6 million across all 11 Bitcoin spot ETFs on Tuesday. This is the fifth consecutive trading day of negative flows. Grayscale Bitcoin Trust (GBTC) saw outflows of $93.2 million, while Fidelity Bitcoin ETF (FBTC) and Bitwise Bitcoin ETF (BITB) experienced net outflows of $35.3 million and $34.3 million, respectively. The BlackRock Bitcoin ETF (IBIT) continued its streak of zero net inflows for the fifth consecutive day, while the ARK 21 Shares Bitcoin ETF (ARKB) was the only other ETF to see net inflows of $3.6 million.
