May 31, 2023 10:52 PM | 3 min read
Major cryptocurrencies are back slightly in the red on Wednesday evening following renewed concerns regarding inflation.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Bitcoin (CRYPTO: BTC) | -2.26% | $27,079 |
| Ethereum (CRYPTO: ETH) | -1.17% | $1,874 |
| Dogecoin (CRYPTO: DOGE) | -1.25% | $0.071 |
What Happened: The latest JOLTS report brought a surprise as job openings surged to 10.1 million in April, surpassing expectations of 9.375 million.
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In an interview with the Financial Times that was published on Wednesday, Loretta Mester, the President of the Federal Reserve Bank of Cleveland, expressed her stance on the Fed’s continuous rate increases. Mester firmly stated that she sees no reason to halt this trend, and expressed her willingness to reconsider if there are shifts in the current hot employment market and prices that characterize high inflation periods.
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| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| XDC Network | +22.31% | $0.03837 |
| MX TOKEN | +5.13% | $3.23 |
| Stellar | +2.08% | $0.09264 |
At the time of writing, the global crypto market capitalization stood at $1.14 trillion, a decrease of 1.32% over the last day.
On the last day of May, investors observed the federal debt ceiling debate in Washington, causing U.S. Stocks to experience a decline. The S&P 500 index dropped by 0.61%, while the Nasdaq Composite decreased by 0.63%. The debate was centered around a bill to raise the debt limit and cap government spending, which was passed in the House with substantial support on Wednesday.
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Analyst Notes: “Bitcoin’s monthly win streak will come to an end as Wall Street directs its attention on short-dated Treasuries, AI bets, and more traditional safe-haven trades. If Bitcoin were Superman, Fed tightening would be its kryptonite. Today’s Fed speak and hot labor data support the case for more Fed rate hikes and that should keep Bitcoin trapped in the lower boundaries of its trading range,” said Edward Moya, Senior Market Analyst at OANDA.
Crypto analyst Michael van de Poppe said that the current state of the altcoin market has reached a critical point. The 200-Week MA and EMA indicators indicate a strong level of support, suggesting a possible upward trend in the near future. If these indicators continue to hold, a new impulse move towards the upside may be imminent.
Crypto trader Alex Krüger is exuding confidence in the future performance of Bitcoin and Ethereum. He cited the Federal Reserve’s movements on interest rates as a pivotal factor in the market’s potential to rally in anticipation of a recovery trajectory.
The trader points out that the Fed’s fast and furious run of 20 x 25bps (basis points) rate hikes are likely drawing near its end – a trend that could provide just the impetus to reignite momentum in the higher echelons of crypto trading.
“The Fed has delivered 20 x 25bps (basis points) rate hikes in its fastest and most aggressive hiking cycle in history. Which means at least 90% of the Fed hikes are behind (if not all). That to me is all that matters, and makes it easy to stay long. This has been my view all year,” he said.
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