Bitcoin, Ethereum and cryptocurrencies: 75 basis points do not scare the crypto market

Bitcoin, Ethereum and cryptocurrencies: 75 basis points do not scare the crypto market


In the coming trading days, of course, it will be clear whether these price levels will hold or whether we will have to deal with the usual volatility after the FOMC meeting, but nevertheless, this is a good sign, mainly due to the fact that Powell was also more than accommodative regarding the next steps of the FOMC.

Yes, rates have increased by 75 basis points – all in line with expectations. There was no shock, i.e. even a hint of attempts to create a full-fledged “medicine for horses”, which was only hinted at as a possibility by a small group of analysts. Everything went according to plan, i.e. an increase of 75 basis points, which led to a sharp increase in Bitcoin quotes, as well as Ethereum and the rest of the sector, and very good signals were received in the first hours of trading in the United States.

But why did the markets move so positively, for several cryptocurrencies even in double digits? Everything went according to expectations, and therefore it would be a little absurd to think that this happened because of the rise, which, nevertheless, was important.

It was possible to calm the markets thanks to particularly “dovish” rhetoric, that is, language that was soft and did not hint at any sharp movements in the coming months, with wait-and-see tactics on the part of the Fed, which, apparently, is a way out for Washington.

Inflation remains under control

The next actions of the Fed and, accordingly, the FOMC will continue to depend on what the inflation data will be. If it does not decrease, then he is open to another 75bp rate hike next month (this is Powell’s statement), which the markets have already discounted.

The inflation rate for June 2022. Source: Tradingeconomics

The inflation rate for June 2022. Source: Tradingeconomics

And yes, it’s not a recession!

And several commentators were furious about this, because to hear from the head of the Fed the words that GDP reports should be taken as the absence of a recession. This is not exactly what everyone expected to hear. However, Powell still considers a soft landing possible, while the markets have already discounted at least part of the probability of a much less comfortable landing. The pumping of the dollar continues.

The US Dollar Index (DXY). Source: TradingView

The US Dollar Index (DXY). Source: TradingView

And how are things going on in the cryptocurrency market?

An important week has ended for Bitcoin and Ethereum: the two main coins by market capitalization have shown a significant price increase. Growth, which, however, will have to be analyzed due to the data by , not only from the point of view of the weekend, always greedy for volumes, but also in order to understand where we are in an attempt to restore the cryptocurrency market.

Will the king and Prince of the market continue to lead the restoration? Or should we expect a retreat? And while we are still in a bear market, how are we doing in terms of adoption and therefore coverage?

And so, Bitcoin and Ethereum have had the busiest week in recent times.

This week has been eventful not only in terms of prices: Bitcoin has returned to the $24,000 mark:

The price movement of the BTC. Source:

The price movement of the BTC. Source:

Ethereum, on the other hand, has returned to the $1,700 mark, and is firmly standing on it:

The price movement of ETH. Source:

The price movement of ETH. Source:

This week has also been eventful in terms of news, both inside and outside the blockchain.

  • El Salvador continues to bet on Bitcoin

And this is good news, although in fact we believe that it is not Bitcoin that needs El Salvador, but vice versa. Indeed, the country’s finance minister confirmed the readiness of the small Central American country to continue to push for the adoption of BTC and various projects that have already been launched.

There are some interesting signs for Bitcoin and Ethereum. Also interesting is the fact that there is actually a hint of upcoming events that will be revealed later this year.

  • There are more and more banks appearing in the market

Mainly for the provision of trading and depository services. Santander, with its Brazilian division, became the most notable in the last week to make such a statement. But Charles Swab’s commitment to creating an index dedicated to cryptocurrencies and Bitcoin was also more than interesting for those looking at the long-term, and very long-term perspective of this asset.

  • Ethereum is dominated by “Merging”

Rather, discussions around the transition to Proof of Stake, which remains one of the most important dates in history for this ecosystem. The semi-final date has been reached, and additional tests need to be carried out for the final completion of the transition.

This remains the most important issue related to Ethereum, which in any case, from the point of view of market value, has shown a significant increase compared to the lows reached during the bottom for the market, caused also by various situations arising as a result of bankruptcies that began with Terra Luna, and also affected several large operators in the funds sector and credits.

Meanwhile, the activity on the blockchain is also growing, as is the number of wallets that have at least part of ETH.

Statistics of the Ethereum blockchain. Source:

Statistics of the Ethereum blockchain. Source:

Since the historical date is now awaiting the entire ecosystem, these are very interesting signals for those who are closely following the project, always taking into account the general market conditions, conditions that do not allow us to be too calm, and which require maximum caution when opening positions. 

Perhaps the bottom is passed?

This is the question of today, and most of the experts seem to be inclined to the answer “yes”.

At the bottom or not, but we are facing what could be a turning point, and for many there is still a good opportunity to accumulate funds at prices well below the peak.

Summing up, we can say that little is changing for the cryptocurrency market, and, in all likelihood, we will have a more accurate direction for the world of cryptocurrencies and the economy as a whole when the summer is over.

There is no doubt that, as Powell correctly pointed out, the improvement in overall economic conditions will depend on factors that are still largely beyond the control of central banks. First of all, energy, as well as the situation with global supply chains. Situations that must return to normal if we want the economy, including the financial one, to come to life again.