Buy the News, Sell the Rumor: FED’s Latest Decision Sends Crypto Prices Soaring – Santiment Reports – NewsTo
Buy the News, Sell the Rumor: FED’s Latest Decision Sends Crypto Prices Soaring – Santiment Reports

Buy the News, Sell the Rumor: FED’s Latest Decision Sends Crypto Prices Soaring – Santiment Reports


For cryptocurrency traders, the latest interest rate increase by the Federal Reserve may have been a case of “sell the rumor, buy the news”. When traders foresee a specific event or announcement, they may sell off their assets in expectation of a negative outcome. When the event or news really occurs, however, the market frequently recovers because the adverse effect turns out to be less severe than anticipated.

Just three hours after the US Federal Reserve announced its decision to raise interest rates by 25 basis points, Bitcoin experienced a sharp rise above $29.2k. The markets reacted favorably to this, which raises the possibility of a rise in the near term.

At first glance, it doesn’t seem that the interest rate increase hurt the price of cryptocurrencies, which has some people believing that they won’t have to worry about fiscal policy again until June. For Bitcoin, which has been closely tied to equities over the previous 18 months, the fact that interest rates have increased by 5% is not good.

However, there are more and more signs that the correlation between the two industries may be waning. This is demonstrated by the fact that the interest rate increase today had little effect on the crypto market, as opposed to how every time Jerome Powell, the Chairman of the Federal Reserve, made a comment in 2022, there were large market cap losses.

The recent rate hike decision has had a positive impact on the cryptocurrency market, with Bitcoin experiencing a 2.1% increase in the past 6 hours and an increase in trading volumes across top market cap assets. The high level of address activity on Wednesday, compared to the past week, suggests that the rally was related to the rate hike becoming official.

Notably, there are no extreme shorts on the largest market cap assets, with Binance Coin’s extreme short ratio returning to even after the Fed decision. It’s important to consider how speculation about the Fed decision may have overshadowed its actual impact.



11 thoughts on “Buy the News, Sell the Rumor: FED’s Latest Decision Sends Crypto Prices Soaring – Santiment Reports

  1. Hongzhi 황제의 마음 깊은 곳에서 그는 이미 분노했습니다.
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    프라그마틱 슬롯
    Zhu Houzhao는 Fang Jifan의 치마를 들어 올렸습니다. “무슨 말을하고 싶니?”
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    사실 마음 속으로는 체크아웃하는 다른 사람들이 부러웠다.
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    무료 슬롯
    Chen Yan은 격렬하게 몸을 떨며 Liu Jian을 재빨리 바라 보았습니다.

  2. Hongzhi 황제는 들었지만 … 이 말이 … 조금 이상하다고 느꼈습니다.
    온라인 슬롯 머신
    パチスロ うしおととら
    무료 슬롯
    Wang Shi는 여전히 약간 주저했고 Yang Zhongguan의 말이 합리적이라고 느꼈지만 …
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    Li Dongyang은 약간 실망했지만 이때 Xie Qian이 사건을 때렸습니다.
    슬롯사이트
    에그슬롯
    ???슬롯 사이트
    그는 검은 모자를 잃었을 뿐만 아니라 은퇴 혜택까지 잃었습니다.

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