Global trade markets, particularly the ones in the US, are reacting positively to the minutes of the FOMC’s latest meeting as a result of which Ethereum’s value went past $1,200.
The minutes of the meeting suggested that interest rates though be increased yet not so exorbitantly but lesser than the previous months.
Bitcoin’s performance however was relatively unchanged as neither there were any prominent gains or declines.
Bitcoin’s Reaction to FOMC’s Minutes
Federal Open Market Committee’s (FOMC’s) meeting had taken place and the minutes have been recorded and circulated too.
The minutes of the meeting revealed that a small increase in the interest rates shall be made very soon.
The word “small” was what the crypto market needed to hear indeed. Immediately thereafter, the crypto markets started to react to what was concluded in yesterday’s FOMC meeting.
Though Bitcoin couldn’t utilize the positive sentiment to its advantage, neither there were any prominent declines nor were there any notable value increases.
In fact, no change occurred in Bitcoin’s market though FOMC clearly said that rates would be increased soon but the increase would be smaller.
The minutes indicated that most of the participants in the meeting suggested that they needed to lift their feet off from accelerating interest. Hence the majority consented that a small decrease would be most appropriate.
It seems that a small decline in inflation has influenced FOMC to reconsider its aggressive policy. Resultantly, it has come to a consensus that they do not need to increase the interest rates consecutively.
The news impacted on Bitcoin market which spiked Bitcoin’s value to $16,771.48 i.e. the highest value of the day. However, when the trading closed for the day, Bitcoin was trading at a price range of $16,544.58.
Bitcoin is still lagging behind its 14-day relative strength index (RSI) as it remained unable to go past the 40.35 level i.e. a crucial ceiling point.
After nearing this crucial ceiling point with level 39.90, Bitcoin was again forced back to level 38.00.
Ethereum Reacted Strongly
In comparison with Bitcoin, Ethereum however took full advantage of the market’s positive sentiment drawn from FOMC’s minutes.
The moment FOMC’s cooling down interest rates a bit surfaced, Ethereum started to see value gains. The positive sentiment took Ethereum’s value beyond $1,200.
Similar price gains could also be seen in the ETH/USD which went as high as $1,211.63. Prior to the news, ETH/USD was exchanging hands at a price of $1,211.63.
In the process, Ethereum also managed to go past its resistance level which was set at $1,180. Value gains for Ethereum became obvious when its RSI headed beyond 42.50 by breaking the benchmark ceiling of 42.00.
If Ethereum wants to race for further value increases, then it must make sure that it crosses the next crucial ceiling point i.e. 43.00.