bitcoin (BTC) was flat during US trading hours, gaining 0.3%, even as the Standard & Poor’s 500 index slipped.
Crypto traders anticipate the next big economic event, the Federal Reserve’s monetary policy decision due out Wednesday at 2 p.m. ET.
“Personally, I’m not ready to call a 100% bottom here yet, because I’d like to see exactly how the economy reacts in the fourth quarter to a 3% to 4% fed funds rate,” Nick Mancini said. , director of research at Redeem Channel, told CoinDesk TV.
One thing that may or may not be up for discussion, but should be: As speculation mounts over when the Federal Reserve might pivot dovish, some economists, including former US Treasury Secretary Lawrence Summers, are warning that a such a move could cause the US dollar to weaken. against other world currencies. This, in turn, could push up import prices, which could thwart the Fed’s primary goal of lowering inflation.
The CoinDesk Market Index increased by 0.1%. Dogecoin (DOGE), the biggest gainer in October when its price doubled, slipped 0.5% on the first day of the new month.
● CoinDesk Market Index (CMI): 1,026.83 +0.5%
● Bitcoin (BTC): $20,440 +0.3%
● Ether (ETH): $1,576 +0.7%
● S&P 500 daily close: 3,856.10 −0.4%
● Gold: $1,651 per troy ounce +0.9%
● Daily close of the 10-year Treasury yield: 4.05% −0.0
Bitcoin, Ether, and Gold prices are taken at around 4 p.m. PT. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk indices is available at coindesk.com/indices.
Money supply growth is down, an encouraging sign for the Fed’s progress
By Glenn Williams Jr.
Crypto watchers hoping for a more dovish turn in monetary policy might be optimistic about a percentage decline in M2 money supply growth from a year ago.
The parabolic increase in the US money supply in 2020 is largely responsible for the current inflationary environment. The reduced supply growth could be proof that the Federal Reserve‘s recent measures are working.
Bitcoin and ether were trading sideways on Tuesday, albeit slightly in the green, a day before the Federal Open Market Committee’s latest interest rate decision.
Read the full analysis of the crypto markets here.
Overview of Altcoins
Elon Musk’s tweet sparks a wave of Twitter-themed Dogecoin tokens: A new class of Shiba Inu-inspired tokens was born on BNB Chain and Ethereum on Tuesday following a related tweet from tech billionaire Elon Musk. The price of more than 67 of these tokens fell more than 90% after they were issued, according to on-chain data. Learn more here.
Uniswap overtakes Bitcoin ahead of Fed rate hike decision: Uniswap is a decentralized crypto exchange (DEX) that runs on the Ethereum blockchain. Its native UNI token recently rose 5.1% in the past 24 hours and rose more than 10% in the past week. Learn more here.