The majority of major cryptocurrencies fell on Sunday (24/4/2022) 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 Coin Market Cap at 16:20 WIB, the overall world crypto market capitalization was recorded at US $ 1.84 trillion, down 0.14%.
Bitcoin (BTC), the coin with the largest market cap, was up 0.29% from Saturday. However, it is still below the price level of US$ 40,000/coin. Precisely at US$ 39,710,35/coin or equivalent to Rp. 570.44 million/coin (assuming an exchange rate of Rp. 14,300/US$).
Crypto trading conditions remain uncertain, especially as macroeconomic and geopolitical risks persist. This can make some investors and traders wait and see. This keeps the coin’s rate at a standstill.
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.
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.