The Federal Reserve’s Attempt to Dampen Markets
Despite the Federal Reserve’s efforts to dampen the markets by suggesting that rate cuts might not occur in March, stock markets have opened in the green and select altcoins are following suit. Oracles $LINK and $PYTH are among the leading altcoins in this upward trend.
Market Skepticism
Prior to the Federal Reserve’s January FOMC meeting, the crypto market was down and continued to show a bearish bias. However, after giving the markets time to process Powell’s statement that interest rates would likely not be cut in March, skepticism seems to have set in.
Fed’s Ability to Influence the Market
The Federal Reserve has always been able to influence the markets and dampen excessive exuberance. Although Powell’s speech was generally seen as ‘dovish’, he made a point to counteract the market’s belief that rate cuts were imminent. The market may not be easily fooled this time around.
Market Anticipation of More Liquidity
The fact that the market has opened in the green suggests that it may be anticipating an increase in liquidity sooner rather than later. With the market’s forward-looking nature, this could imply that the market is not buying into Powell’s statement.
Bullish Momentum in Altcoins
The crypto market is showing a less bearish environment, with $BTC holding steady and some altcoins surging. Despite overall market conditions, $LINK has maintained its upward momentum and is up around 10%. On the other hand, $PYTH, a newcomer to the crypto space, is approaching price discovery and has the potential for a bullish future.
Hot Take: Altcoins Show Resilience in the Face of Dampened Markets
Despite the Federal Reserve’s attempts to dampen the markets, altcoins like $LINK and $PYTH have shown resilience, maintaining their bullish momentum. This suggests that the market may not be easily swayed and is looking ahead to increased liquidity. As the crypto market continues to evolve, these altcoins could present lucrative opportunities for investors.
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