Ahead of the much-anticipated hike in interest rate by Federal Reserve, Bitcoin prices went up to trade in the higher end of the range for most of the year.
The upward trend of Bitcoin
The largest cryptocurrency in the world went up to $39,151, up by 3.6% in early Trading in New York, a move that generates excitement these days for the token. Bitcoin swung in a 5% band for eight trading sessions reflecting an extended calm not seen in this counter since the start of this year.
Antonio Juliano, CEO, and founder of dYdX, a decentralized platform trading perpetual swaps, said that cryptos are muted now.
Like other riskier assets in the market, cryptos have also been bogged down by the impending interest rate hikes by Federal Reserve and other global central banks grappling to contain inflation. Wednesday saw the market watchers bracing up for the Federal Reserve’s biggest rate hike since 2000 and awaiting more clues on how the central bank is fighting inflation.
In such an environment, beyond the highs this year, Bitcoin has not been able to move in any meaningful way. Dan Gunsberg, the Co-founder of on-chain derivate trading platform Hxro Network, said on the phone that the market is range-bound right now.
Money has flowed out of the digital currency sector in the uneasy market. Investors pulled out approximately $120 million from cryptocurrencies last week, resulting in a total outflow in the past one month to $339 million, according to data tracked by CoinShares, a fund provider. The majority of the flow was in Bitcoin last week, the single largest weekly outflow since June 2021.
In another development, CoinGecko release data showed ApeCoin price rallying by 17% on Wednesday intraday after Elon Musk changed his display profile on Twitter with a collage picture of Bored Apes. ApeCoin is a native crypto token from the Yuga Lab’s APE platform.
Yuga Labs, which has created an NFT collection of Bored ape Yacht Club, recently auctioned virtual land on the “Otherside,” a metaverse project yet to be launched. The sale of 55,000 blocks of land netted $320 million by Yuga, but it also led to colossal congestion and massive transaction fees on the Ethereum network during the past weekend.
ApeCoin’s token price fell to $14.50 on Wednesday after peaking at $22 on Sunday. It, however, jumped again to $17.16 after the Tesla CEO changed his display picture on Twitter.
