Over the past 24 hours, the prices of Bitcoin (BTC) and Ether (ETH) have seen little change. Both spot and futures markets have experienced fading volumes and lackluster price catalysts.
Initially, Bitcoin seemed poised to surpass the $27,000 level on Wednesday, but the rally was halted as the U.S. stock market experienced a renewed decline.
According to FxPro markets analyst Alex Kuptsikevich, while cryptocurrencies saw increased buying, equity markets faced pressure as the dollar gained momentum. However, this momentum was short-lived, which dampened optimistic outlooks.
Kuptsikevich stated that these growth impulses are likely to be a trap for bulls, presenting the best opportunity to sell on the upside. He also suggested that the crypto sector may require banking issues or uncertainty about government solvency to generate sustainable growth momentum. Recent movements in bond markets indicate that such a scenario may be brewing, as per Kuptsikevich.
In contrast, alternative tokens experienced more volatility in the crypto market. Bitcoin Cash (BCH) saw an 8% jump, and Maker’s MKR tokens, which are associated with the DeFi protocol, rose by 7%. The growth in MKR could be attributed to an increase in wallet balances holding the token on exchanges, indicating a rise in demand.
The CoinDesk Market Index (CMI), a comprehensive index of numerous tokens, increased by 0.95% in the last 24 hours.
The recent comments from the U.S. Federal Reserve suggested that interest rates may remain high for a considerable period. This announcement caused broader market jolts in the U.S. as traders factored in fears of inflation.