Interest rate hike outlined after Powells remarks
The US stock market also turned upward “Decent growth” [Edaily Choi Hoon-gil] The coin market is recovering. Market uncertainty has dissipated as Federal Reserve Chairman Jerome Powell unveils the outline of a rate hike in the US.
Federal Reserve Chairman Jerome Powell.
According to CoinMarketCap, a site for cryptocurrency market conditions on the 23rd, at 8:20 a.m. on the same day, Bitcoin reached $42,461, up 3.39% from the previous day. Ethereum rose 3.10%. Altcoins also showed signs of recovery, with Solana rising 3.01% and Ada rising 7.09%. On the domestic Upbit basis, Bitcoin rose 3.24% from the previous day to record 51.75 million won.
The ‘digital asset psychology index’ provided by Dunamu, which operates Upbit, was 56.18 points as of the 22nd, indicating a ‘neutral’ level. This is an increase from the previous day. This index is for 111 coins listed on the Upbit KRW market before February 2021. A value of 0 indicates a contraction of the market as ‘very fear’, and a value of 100 indicates a boom in the market as ‘very greed’.
According to CoinWords, a cryptocurrency mining information site, the Bitcoin hash rate recorded 201.24 EH/s on the 22nd. This is similar to the day before. Hash rate refers to the computational processing power mobilized to mine Bitcoin. In general, the lower the hash rate, the lower the difficulty of mining, which increases the supply and increases the likelihood that the price of Bitcoin will fall.
The rise in the coin price seems to have been influenced by Chairman Powells remarks. Chairman Powell said at the National Real Economic Association conference in Washington, DC on the 21st that he was prepared to raise the benchmark interest rate by 50 basis points to contain high inflation. Immediately after the remarks, the New York stock market fell, but turned upside down the next day.
According to Marketpoint on the 22nd, the Dow Jones Industrial Average closed at 34,807.46, up 0.74% from the previous trading day. The Standard & Poors 500 Index rose 1.13% to 4511.61. The Nasdaq Composite rose 1.95% to close at 13,838.46. The small-cap Russell 2000 index rose 1.03%. “A very good labor market and decent growth are supporting the stock,” said Scott Ren, senior market strategist at Wells Fargo.