{"id":15916,"date":"2022-05-06T02:01:04","date_gmt":"2022-05-06T02:01:04","guid":{"rendered":"http:\/\/egrowonline.com\/?p=15916"},"modified":"2022-05-06T02:01:04","modified_gmt":"2022-05-06T02:01:04","slug":"crypto-markets-turn-lower-a-day-after-fed-raises-rates-50bps","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=15916","title":{"rendered":"Crypto Markets Turn Lower a Day After Fed Raises Rates 50bps"},"content":{"rendered":"


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For a second there it seemed like everything was going to be alright.<\/p>\n

With many investors concerned about a surprise 0.75% hike in policy interest rates by the Federal Open Market Committee (FOMC), the market breathed a sigh of relief when the Fed announced a 50 basis point increase in a policy statement<\/a> on May 4.\u00a0<\/p>\n

While the global market cap of crypto assets jumped 5.6% by $100B dollars from $1.8T to $1.9T on May 4, those gains have been erased the following day.\u00a0<\/p>\n

Global crypto market cap stands at $1.77T, according to CoinGecko<\/a> as of 2 p.m. New York time.\u00a0<\/p>\n

BTC is down 5.6% in the last 24 hours. ETH is down 3.6%. And every other smart contract platform in the top ten by market cap has fallen at least 4%.<\/p>\n

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\"\"<\/figure>\n<\/div>\n

Hype Coins Rekt<\/strong><\/h4>\n

Down 13.2%, ApeCoin<\/a>, the token of Yuga Labs\u2019 ecosystem<\/a> which had been red hot<\/a> leading up to the associated Otherdeeds sale, is the second-worst performer in the last 24 hours. STEPN<\/a>, of the recent \u201cMove2Earn<\/a>\u201d phenomena, has bled the most among the top 100 coins, shedding 17.3%.<\/p>\n

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\u201cReversing from yesterday\u2019s euphoria, people seem to better understand that while a 75bps hike is off the table for next month, the Fed will keep hiking until something breaks.\u201d<\/p>\n

Tyler Reynolds<\/cite><\/figure>\n

Angel investor and crypto advisor Tyler Reynolds<\/a> thinks more sophisticated players were quick to take advantage of the previous day\u2019s upward price action. \u201cThe smart money saw yesterday\u2019s pump for the dead cat bounce that it was and have moved quickly to sell off illiquid positions while the liquidity to exit is there,\u201d Reynolds told The Defiant.\u00a0<\/p>\n

\u201cReversing from yesterday\u2019s euphoria, people seem to better understand that while a 75bps hike is off the table for next month, the Fed will keep hiking until something breaks,\u201d the angel investor said. \u201cYou don\u2019t want to be in this market when that breaking happens.\u201d<\/p>\n

The crypto market isn\u2019t the only one doing badly \u2014 the Nasdaq is down 3.42% on the day. Crypto and equities have tended to be highly correlated in recent months.<\/p>\n

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\"\"Total Crypto Market Cap and Nasdaq (Orange) YTD<\/figure>\n<\/div>\n<\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

For a second there it seemed like everything was going to be alright. With many investors concerned about a surprise 0.75% hike in policy interest rates by the Federal Open Market Committee (FOMC), the market breathed a sigh of relief when the Fed announced a 50 basis point increase in a policy statement on May […]<\/p>\n","protected":false},"author":1,"featured_media":15917,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[44],"tags":[5512,62,88,1858,89,518,1739,1181],"class_list":["post-15916","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ada","tag-50bps","tag-crypto","tag-day","tag-fed","tag-markets","tag-raises","tag-rates","tag-turn"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/05\/EverythingIsDown.jpgnocache1.jpeg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/15916","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15916"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/15916\/revisions"}],"predecessor-version":[{"id":15918,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/15916\/revisions\/15918"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/15917"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15916"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15916"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15916"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}