Crypto Positive, Fed Determines Next Direction
Major cryptocurrency prices moved positively on Wednesday, with Bitcoin trading above $111,000 after recovering from an early-week decline. Despite the slight increase, market sentiment remained cautious. Investors await the release of US employment data, which is believed to influence the Federal Reserve's decision to cut interest rates. Expectations that the Fed will soon loosen monetary policy have led some traders to remain on the defensive while monitoring the direction of the US dollar and other riskier assets.
Ethereum also traded relatively strong around $4,400, despite selling pressure arising from the weakening global stock market. Other crypto assets such as Binance Coin (BNB) and Solana (SOL) showed limited, but generally positive, movement, pressured by the still sluggish market direction. However, several tokens based on DeFi and Web3 projects actually recorded slight increases, as investor interest in emerging sectors perceived as having long-term potential increased.
Overall, the crypto market remains in a consolidation phase following the high volatility of the past month. Global sentiment, from inflation and bond yields to geopolitical tensions, will be key factors in determining price movements in the near term. If US economic data strengthens the case for an interest rate cut, Bitcoin and other cryptocurrencies could potentially attract investor capital again. Conversely, if the data is stronger, corrective pressure could persist in the short term.
Source: Newsmaker.id
