Major cryptocurrencies experienced a decline on Wednesday evening following the release of the minutes from the September Federal Open Market Committee meeting earlier today. These minutes have revealed that a majority of committee members anticipate the necessity of at least one more rate hike during this cycle.
While there were some dissenting voices, it was unanimously agreed upon by all members that it is imperative to maintain high rates until solid evidence confirms that inflation is returning to the targeted 2% per year.
“A majority of participants judged that one more increase in the target federal funds rate at a future meeting would likely be appropriate, while some judged it likely that no further increases would be warranted,” the summary of the Sept. 19-20 policy meeting stated.
The highly anticipated inflation data for September is set to be released by the Bureau of Labor Statistics on Friday.
The global crypto market cap currently stands at $1.06 trillion, reflecting a decrease of 1.39% in the past 24 hours.
Stocks made modest gains on Wednesday as investors eagerly awaited the release of new U.S. consumer inflation data and Treasury yields continued to decline The broader S&P 500 ended the day at 4,376.95, recording a gain of 0.43%. Meanwhile, the tech-heavy Nasdaq Composite surged 0.71% and closed above its 50-day moving average for the first time since September 14, reaching 13,659.68.
Overall, it was a positive day for the markets as traders closely monitored economic indicators and the performance of key indices.
According to the crypto analyst Michael Van de Poppe, Bitcoin is entering a zone where potential longs may arise. “I’m starting to buy some here, let’s see where we’re heading with CPI tomorrow. Dollar & Yields turning down, Nasdaq & Gold up. Bitcoin is lagging behind.”
#Bitcoin into that area of potential longs. I’m starting to buy some here, let’s see where we’re heading with CPI tomorrow.
— Michaël van de Poppe (@CryptoMichNL) October 11, 2023
According to the pseudonymous crypto analyst Altcoin Sherpa, the current state of Bitcoin resembles a period of heavy chop, with no clear breakout yet. “Reminds me a lot of 2019, where price traded up and down, above and below the 200d EMA with weird spikes everywhere. Still think that 2024-2025 is the time for fun, try to survive until then.”
$BTC: I think we’re still in a period of heavy chop with no true breakout yet. Reminds me a lot of 2019, where price traded up and down, above and below the 200d EMA with weird spikes everywhere
— Altcoin Sherpa (@AltcoinSherpa) October 11, 2023
According to Santiment, an on-chain analytics platform, the increasing quantity of outstanding futures and options related to Bitcoin could be contributing to the recent lackluster performance of the cryptocurrency market in October. When Bitcoin’s open interest reaches $7 billion or more, it tends to indicate a sense of greed among investors. Currently, the open interest stands at $6.19 billion.
🤑 The growing amount of outstanding futures & options toward #Bitcoin may be lending to #crypto‘s failure to launch here in October. Rising open interest, particularly when $BTC starts seeing $7B or more, often signals greed. For now, it sits at $6.19B. https://t.co/DHSaJGvQtI pic.twitter.com/zkE6qbDjN9
— Santiment (@santimentfeed) October 11, 2023
Produced in association with Benzinga
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