The prices of major cryptocurrencies tended to correct in trading on Saturday (23/4/2022) afternoon Indonesian time, as investors responded negatively to the statement by the chairman of the United States (US) central bank regarding further monetary policy.
Launching data from CoinMarketCap, Bitcoin (BTC) fell back below the level of US $ 40,000. At 14:30 WIB, the coin with the largest market capitalization fell 2.70% to a price level of US$ 39,545.54/coin or equivalent to Rp. 567.48 million/coin (assuming an exchange rate of Rp. 14,350/US$).
These trading conditions reflect uncertainty among traders, particularly as macroeconomic and geopolitical risks persist.
Furthermore, the increasing correlation between BTC and the stock market – which is also correcting – means investors are more sensitive to the impact of rising interest rates on the value of crypto assets, similar to what happened in 2014 and 2018.
This could lead some investors and traders to wait and see, leading to lower market returns. especially compared to the last two years when the unprecedented jumbo monetary and fiscal stimulus pushed skyrocketing crypto assets to the moon.
Here are the movements of some of the other major crypto coins for the day:
Ethereum -2.19% to the level of US$ 2,946.48/coin or Rp 42.48 million/coin
BNB -2.22% to the level of US$ 401.99/coin or Rp 5.76 million/coin
XRP -2.90% to the level of US$ 0.7126/coin or Rp 10,225/coin
Solana -3.33% to the level of US$ 99.77/coin or Rp 1.43 million/coin
Terra -0.46% to the level of US$ 93.21/coin or Rp. 1.33 million/coin.
The crypto market, which had previously recovered, today turned back towards the correction zone, following the global stock market following the statement by the chairman of the US central bank (Federal Reserve / The Fed) regarding future monetary policy.
Investors in risk assets markets, both in stock and crypto markets, tended to respond negatively to Fed chairman Jerome Powell’s remarks suggesting that a bigger rate hike may be at the next monetary policy meeting, in this case the May issue.
“It’s time to move a little faster in raising interest rates. I also think there is something to be said for the front-end loading any accommodations that deem appropriate. … I would say 50 basis points will be discussed for the May meeting,” Powell said. in the International Monetary Fund (IMF) Forum.
Prior to Powell’s comment, San Francisco Fed President Mary Daly, Chicago’s Charles Evans, and Atlanta’s Raphael Bostic had said they saw the need to raise interest rates to tame inflation, but didn’t want to stop the expansion.
Daly acknowledged that tighter policies could trigger a mild recession. St. Louis Fed President James Bullard said earlier in the week that he was open to an option for a 0.75% increase at the May meeting to help curb inflation, which is now the highest in 40 years.
Furthermore, investors also responded negatively to the soaring yield of 10-year US Treasury bonds to the level of 2.9%.
In addition to these two economic data, Binance, which is the largest crypto exchange company in the world, is in a state of laziness.
Binance announced that it had deactivated the accounts of its main client in Russia, as a result of the economic sanctions imposed by the European Union on Russia.
Binance informed its users in Russia, where both individual and corporate users with cryptocurrencies worth more than 10,000 euros (US$ 10,900) will be barred from making new deposits or trades.
However, affected clients can still withdraw their funds.
Binance, along with Coinbase Global Inc and Kraken, have rejected calls from Kyiv for a complete ban on Russian users after Russian President Vladimir Putin carried out his military aggression in Ukraine.
Most recently, Binance has also vehemently denied allegations that it had helped Russian authorities track down a multimillion-dollar donation to the currently jailed opposition Alexei Navalny. The report is the result of an investogasu published by Reuters on Friday (22/4) yesterday.