Leading digital assets continued to rise, despite a hike in the ФРС target range by 75 basis points. Crypto market capitalization rose 8% in the 24 hours to surpass $1.1 trillion, according to CoinGecko.
Over the same period, Bitcoin rose 9.5%, Ethereum gained almost 14%. At the time of writing, the first asset was trading near $23,150, the second around $1,645.
Ethereum prices have surpassed the $1,700 level. Bitcoin is trading near $23,700.
According to Coinglass, over the last 24 hours, futures market liquidations surpassed $385 million. More than $170 million of this total was Ethereum. Exchanges predominantly liquidated short positions.
The traditional stock market also reacted to the Fed’s decision with gains. For the July 27 trading session, the Nasdaq Composite rose 4%, the S&P 500 added 2.6%, and the Dow Jones Industrial Average rose 1.37%.
According to Alfonso Pekkatello, former head of ING’s equities desk, the market reaction is linked to Fed Chair Jerome Powell’s comments about potential easing of monetary policy in the future.
Today’s upwards move so large crypto funds who missed it must now be praying for Amazon or Apple to report horrible earnings tomorrow or for a negative GDP print (very unlikely) to load the dip.
— Raoul Pal (@RaoulPal) July 28, 2022
“Today’s rally was so strong that crypto funds that missed it must pray for Amazon and Apple to report horrible earnings tomorrow or for a negative GDP outlook (very unlikely) to prop up the dip,” he wrote.
As Raoul Pal, former Goldman Sachs top executive and macro-investor, warned of a turn in the crypto market in light of rising global liquidity.
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