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.