The majority of the crypto market corrected again in trading Friday (28/1/2022) morning Indonesian time, because investors still reacted negatively to the statement by the United States (US) central bank that it would raise its benchmark interest rate in March.
Launching data from CoinMarketCap at 09:30 WIB, only Bitcoin, Binance Coin (BNB), and Solana strengthened today.
Bitcoin rose 1.82% to a price level of US$ 36,889.64/coin or equivalent to Rp. 530,473,023/koin (assuming an exchange rate of Rp. 14,380/US$), BNB shot up 3.92% to a level of US$ 384.93/coin or Rp 5,535,293/coin, and Solana slightly increased 0.01% to US$ 89.77/coin (Rp 1,290,893/coin).
The majority of the crypto market corrected again in trading Friday (28/1/2022) morning Indonesian time, because investors still reacted negatively to the statement by the United States (US) central bank that it would raise its benchmark interest rate in March.
Launching data from CoinMarketCap at 09:30 WIB, only Bitcoin, Binance Coin (BNB), and Solana strengthened today.
Bitcoin rose 1.82% to a price level of US$ 36,889.64/coin or equivalent to Rp. 530,473,023/koin (assuming an exchange rate of Rp. 14,380/US$), BNB shot up 3.92% to a level of US$ 384.93/coin or Rp 5,535,293/coin, and Solana slightly increased 0.01% to US$ 89.77/coin (Rp 1,290,893/coin).
Bitcoin had touched the range of US $ 37,000 at around 07:00 WIB. However, this did not last long and in the end it was traded again at the level of US$ 36,000.
Bitcoin traders are starting to re-position themselves before the Bitcoin option expiry date ends today.
So far, the volume on open interest, or the total number of options contracts outstanding, suggests a bearish sentiment, although some analysts expect Bitcoin to trade near the maximum price of US$42,000 or the strike price with the most open option contracts.
“More volatility is expected as $2 billion worth of options expire this Friday. We see mixed sentiment,” said Lennard Neo, head of research at StackFunds, a Singapore-based crypto investment firm.
The crypto market is following the global stock market, which tends to fluctuate and its volatility tends to increase. This happened because market participants still reacted negatively to the statement by the United States (US) central bank that it would raise its benchmark interest rate in March.
Fed Chair Jerome Powell raised the odds of more rate hikes this year than previously thought, with the Fed’s rate hikes starting in March.
“I would say that the committee is willing to raise the federal funds rate at its March meeting, assuming the conditions are appropriate to do so,” Powell told reporters after the FOMC meeting on Wednesday (26/1/2022) local time.
In the midst of the still bearish crypto market, the US dollar strengthened again. This can be evidenced by the US dollar currency index (DXY) which rose 0.79% in the last 24 hours to 97.2, according to TradingView.
As an alternative digital currency, Bitcoin also tends to move in the opposite direction to the US dollar. When the greenback strengthens there is a chance for Bitcoin and other cryptocurrencies to weaken.