Bitcoin decreased by 0.6% on Wednesday, ending the day at
around $36,400. Ethereum added 0.2%, while other top-ten altcoins mostly saw
declines from 3.1% (Binance Coin) to 6.6% (Terra, an outsider of the day).
According to CoinGecko, the total capitalization of the
crypto market sank by 0.5%, to $1.73 trillion.
Bitcoin showed positive dynamics all day against the
backdrop of growing stock indices. Up until the Fed meeting, the first
cryptocurrency was gaining over 6%, hitting 5-day highs above $38,800. However,
BTC began to fall almost immediately after the announcement of the results of
the Fed’s two-day meeting.
The regulator announced a curtailment of bond purchases in
early March, as well as an imminent rate hike, followed by a reduction in the
Fed’s balance sheet.
The fall of bitcoin accelerated along with stock indices in
half an hour when the head of the Fed, Jerome Powell, started his press
conference. He noted that rising inflation could force the regulator to raise
interest rates more aggressively.
The first cryptocurrency may finally complete its upward
correction if risky assets resume and intensify the fall after the Fed meeting.
In Russia, buyers are now engaged in the withdrawal of
capital and deprive the country’s economy of financing, as announced by the
Bank of Russia. Last week, the regulator proposed to ban the circulation and
mining of cryptocurrencies in the territory of the Russian Federation. The
State Duma and the Ministry of Finance, on the contrary, are in favour of
regulation, not a ban on the industry. Russian President Vladimir Putin on
Wednesday urged the government and the Central Bank to come to a consensus on
the regulation of cryptocurrencies.
Meanwhile, Turkish President Erdogan instructed the ruling
party to study the impact of cryptocurrencies on the economy. At the same time,
the US Internal Revenue Service said that non-fungible tokens (NFTs) are used
for illegal activities, and celebrities are spreading this by promoting NFTs.
This article was written by FxPro’s Senior Market Analyst Alex Kuptsikevich.
