As the crypto market traded sideways after the Federal Reserve decided to increase interest rates, Bitcoin, the world’s largest and most popular digital token, was almost flat today at $20,533. Bitcoin’s price has been trading in a narrow range of around $20,000 since June this year, after surging to an all-time high of nearly $69,000 in November last year. Similarly, Ether, the second largest cryptocurrency linked to the Ethereum blockchain, fell by nearly a percent to $1,542. Dogecoin price today was more than 10% lower at $0.11, while Shiba Inu was also about 4% lower at $0.000011.
As for other crypto prices, Binance USD, Avalanche, Solana, Tether, XRP, Terra, Tron, Litecoin, Uniswap prices gained today, while ApeCoin, Polygon (up 14%), Polkadot, Chainlink, Cardano, Stellar gained. According to CoinGecko, the global crypto market cap remained above $1 trillion today despite almost flat performance in the last 24 hours.
Since the Federal Reserve raised interest rates this year, the market value of cryptocurrencies has plunged by more than half, soaking up the flood of pandemic-era stimulus that fueled a steep run up in risky assets. Since prices tumbled sharply from their peak, investors have become less interested in speculating in the tokens.
In the past couple of years, bitcoin has traded closely with risk assets, as pandemic-era stimulus flooded the global economy and central banks hiked rates to combat inflation. Coinbase Global Inc., the biggest exchange for cryptocurrencies, doesn’t expect the industry to rebound swiftly from the trading slump that’s battered its revenue. “We are preparing for 2023 with a more conservative bias with more headwinds,” Alesia Haas, Coinbase’s chief financial officer, said in an interview to Bloomberg. “We are preparing and we are developing plans that we will be more conservative next year. These headwinds could persist or possibly intensify.”
