Bitcoin and Ethereum were mixed at press time on Wednesday evening, breaking away from other risky assets after the US Federal ReserveThe minutes of the orientation meeting were as expected. Global cryptocurrency market cap fell 0.7% to $1.3 trillion.
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Why is it important: Major cryptocurrencies like Bitcoin and Ethereum failed to overcome resistance at the key $30,000 and $2,000 levels, even as other risky assets like stocks rallied on Wednesday.
The S&P 500 and NASDAQ ended Wednesday up 0.95% and 1.5%, respectively. At press time, S&P and NASDAQ futures were up 0.15% and 0.07%.
Minutes from the Fed’s monetary policy meeting said attendees were unanimous that the U.S. economy was strong and that further rate hikes in the 50 basis point region would be likely in upcoming meetings. June and July from Federal Free Market Committee, reported Reuters.
“The FOMC minutes are more than three weeks old, but they gave a glimmer of hope that they might adjust their tightening policy later in the year,” said Edouard Moyasenior market analyst at OANDA.
On Bitcoin, Moya said the apex coin is “struggling” above the $30,000 mark and that would be a “worrying sign if stocks continue to stabilize.”
“If the selling pressure picks up again and the earlier lows reached this month around $25,424 are broken through, there is not much support up to the $20,000 level.”
Chartist Ali Martinez pointed out that Bitcoin is close to a point where the value of BTC mined and entering the ecosystem daily is extremely low.
—Ali Martinez (@ali_charts) May 25, 2022
The Puell multiple is the ratio of the daily value of bitcoin issued in dollars divided by the 365-day moving average of the daily value of bitcoin issued in dollars.
In another key development, the besieged Earth (LUNA) cryptocurrency will see its second avatar launched on Friday. Most of LUNA’s value was eroded after the TerraUSD (UST) stablecoin associated with it lost its peg to the dollar earlier in the month.
Global Block Analyst Marcus Sotiriou noted that there are 10 confirmed projects for Terra 2.0, including Nebula, Spectrum, Anchor and Random earth.
“There’s a lot of value in these projects, and the synergies between these protocols create even more value, so despite the lack of confidence in Terra, this might surprise a lot of people in the long run,” Sotiriou said.
Read more : Cathie Wood Continues to Show Faith in Bitcoin, Ethereum: Takes Charge of 2 Crypto-Related Stocks