Bitcoin, Ethereum, Dogecoin Drop As FOMC Meeting Restores Worries: Analyst Warns We Could Be In For A &x27Big Dump&x27 – Benzinga

Major cryptocurrencies declined Wednesday night as the global cryptocurrency market capitalization fell 2.4% to $1.1 trillion.

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Reading: Bitcoin dogecoin crypto services big drops

why it matters: bitcoin and ethereum were in the red at press time after minutes of the us july policy meeting. uu. the federal reserve indicated that the central bank would maintain its aggressive course until inflation subsides significantly.

participants at the federal open market committee meeting judged that “a move to a restrictive policy stance was required to fulfill the committee’s legislative mandate to promote maximum employment and price stability “.

Federal Reserve officials said that while future rate decisions would be based on incoming data, there was little sign inflation was slowing.

“The stock market and digital assets look beyond the inflation story, believing that in six months inflation will fall. it won’t unless the war in ukraine ends and the climate catastrophe leaves no scars,” said martin hiesboeck, head of blockchain research at uphold, a platform for digital multi-asset trading. .

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“With mega-droughts, factories closing, natural gas selling at the equivalent of $400 of oil, bitcoin could still be in a big dump by September,” hiesboeck said in a note seen by benzinga.

Still, the major currency is at a long-term “accumulation point,” hiesboeck said. “The fact that it hasn’t slowed down significantly in recent weeks as we digest some really bad news is a turning point.”

globalblock analyst marcus sotiriou said that technical analysis reveals that bitcoin “faces a critical test in the coming days”.

“the weekly moving average of 200 is just below the current price of 23,700 usd, around 23,000 usd; if this level is not held, it will suggest further declines in the coming weeks and a market reversal may be delayed,” sotiriou said in a note.

cryptocurrency trader michaël van de poppe interpreted the fomc minutes as “dovish” and said September would see a 50 basis point interest rate hike instead of a 75 basis point hike pb. “No need to fear,” he tweeted himself.

well it looks like the Fed is getting more dovish and 50 bps instead of 75 bps is more likely in September. there is no need to fear.

justin bennett said there is a “generational buying opportunity” for bitcoin below the $23,319.47 mark in a tweet.

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A generational buying opportunity for #bitcoin lies below this level.$btc

However, the trader warned his twitter followers in another post that stocks and cryptocurrencies are not bottoming out.

“The s&p 500 is mimicking the crash of 2008. even the time since the ath is nearly identical,” bennett said.

this is amazing. the s&p 500 is mimicking the crash of 2008. even the time since ath is nearly identical. the fund is not for #stocks or #crypto.$spy $spx $btc $eth

Meanwhile, discussions about the Ethereum merger are heating up, according to market intelligence platform santiment. Discussions surrounding Ethereum’s switch to a proof-of-stake model from the current proof-of-work mechanism increased on August 2. 11, according to holiness.

Understandably, #ethmerge discussions have been heating up, & August 11th was when this topic really took off after a date was announced. over the past year, relatively larger spikes in this theme have marked local price highs of around $th.

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