It was a bullish Wednesday session for the crypto market. Bitcoin (BTC) and Ethereum (ETH) ended their extended losing streaks.
The bullish session came despite the Fed delivering the largest rate hike since 1994 to curb inflation.
Another choppy session saw the total crypto market cap fall by $84 billion to a new current-year low of $834bn before bouncing back.
It was a bullish session for the crypto market on Wednesday. The broader market responded favorably to the highly anticipated Fed monetary policy decision, with bitcoin (BTC) ending an eight-day losing streak.
Bitcoin was heading for a ninth day in the red with a fall to a new current year low of $20,084 before finding late support.
Investor reaction to the Fed monetary policy decision tested bitcoin support late in the day before bitcoin tracked the NASDAQ into positive territory.
Crypto Market Cap Slides to a New Current Year Low Before Rebounding
After eight consecutive days in the red, the total crypto market cap recovered from another slide to end the day up $27 billion.
Tracking gains across the US equity markets, the broader crypto market responded favorably to the Fed rate hike and FOMC projections.
The total market cap fell to a new 2022 low of $834 billion before a move through to $950 billion levels. $84 billion came off the table before a broad-based crypto market rebound.
While the broader crypto market responded favorably to the Fed, downside risks linger.
Near-term, these include an anticipated shift in the regulatory landscape and the threat of a global economic slowdown.
Tron (TRX) found much-needed support, with a 13.31% rally reversing a 12.99% slide from Tuesday.
A steadying in the USDD and news of the TRON DAO Reserve making moves to reestablish the dollar peg, easing market nerves.
While the USDD continued to sit below $0.98, the collateral ratio stood at 317.88%.
Total Crypto Liquidations Eased Back Following Fed Policy Decision
Following Tuesday’s spike, total liquidations eased back further going into the Thursday session.
According to Coinglass, 24-hour liquidations stood at $538 million, down from $578 million levels on the day prior. While down from the Tuesday jump to $1,070, however, 24-hour liquidation levels remained elevated.
One-hour liquidations pointed to a steadying in market cap conditions, with one-hour liquidations at $11.78 million.
Crypto Daily News Highlights
SEC sent letters to crypto exchanges to establish whether the appropriate safeguards are in place to tackle insider trading.
Fed delivered the largest rate hike since 1994. The crypto market followed US equities into positive territory.
The BTC price reversal weighed on bitcoin mining profitability, which fell to its lowest level since Oct-2020.
TRON DAO Reserve calmed market fears of another stablecoin collapse, delivering TRX price support.
Binance announced 2,000 open positions while other crypto platforms cut payrolls.
This article was originally posted on FX Empire