• Coins MarketCap
    • Coins MarketCap
    • Crypto Calculator
    • Top Gainers and Loser of the day
  • Crypto Exchanges
  • Bitcoin News
  • Crypto News
    • Cryptocurrency
    • Blockchain
    • Finance
    • Investing
    • View all latest Updates regarding crypto
Wednesday, May 31, 2023
WIREOPEDIA
No Result
View All Result
Contribute!
CONTACT US
  • Home
  • Breaking News
  • World
  • UK
  • US
  • Entertainment
  • Business
  • Technology
  • Defense
  • Health Care
  • Politics
  • Strange
  • Crypto News
WIREOPEDIA
  • Home
  • Breaking News
  • World
  • UK
  • US
  • Entertainment
  • Business
  • Technology
  • Defense
  • Health Care
  • Politics
  • Strange
  • Crypto News
No Result
View All Result
WIREOPEDIA
No Result
View All Result
Home Blockchain

Bitcoin Market Enters ‘Extreme Fear’ Territory Ahead Of Fed Meeting

wireopedia memeber by wireopedia memeber
December 14, 2021
in Blockchain, Crypto, Crypto Market, Cryptocurrency, Finance, Investing, Market
0
Bitcoin Market Enters ‘Extreme Fear’ Territory Ahead Of Fed Meeting
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter

Sentiment in the market is down as the Federal Reserve meeting on monetary policy looms.

You might also like

Crypto Exchange Binance to Remove Privacy Coins From 4 European Markets

Former House Rep blames industry outsiders for associating crypto with bank’s failure

Bitcoin played second fiddle as KAVA, XRP, TRX, RPL and RNDR led the crypto market in May

The Bitcoin market has tip-toed into “extreme fear” territory as the Federal Reserve prepares to meet Wednesday to decide its next move regarding interest rate and quantitative easing policies. BTC is trading at around $48,000 at the time of writing, nearly 30% below its November all-time high of $69,000.

The Fear and Greed Index analyzes market sentiment and emotion from different sources to crunch a number from zero to 100. The closer the index is to its lower bound, the more fearful the market is at the moment. The inverse is true for greed, when people begin purchasing bitcoin out of fear of missing out (FOMO). The metric is currently at 16, denoting extreme fear.

As mainstream media reports expectations for the Fed’s meeting, citing a reasonable probability that the central bank will attempt to curb inflation through a faster interest rate hike, financial markets stand ready to switch its investment thesis. Although the move isn’t likely to come until next year, the Fed has been moving quickly to prevent consumer prices from soaring well above its 2% target.

The market expectation for a faster wrap-up of asset purchases isn’t speculative. At the end of last month, Federal Reserve Chair Jerome Powell said the central bank’s bond-buying program could end sooner than planned amid rising inflation rates and a more robust U.S. economy. Powell added that he and his fellow policymakers would discuss whether it would be appropriate to “wrap up our purchases a few months earlier.”

However, tapering is just part of the deal, and an increase in interest rates is the natural follow-up action. Ever since the beginning of the pandemic, the Fed has kept interest rates near zero in an attempt to further increase market liquidity and economic relief to participants. Altogether, that dynamic prompted investors to seek riskier assets as their traditional investments couldn’t yield big profits any longer. If the Fed raises interest rates quickly and before anticipated, the broader market is expected to switch to risk-off mode and plug into “safer” investments as the risk-reward ratio favors traditional money-making strategies.

For most investors, Bitcoin is still considered a risky investment. Although the digital monetary network has demonstrated time and again its ability to shield investors from inflation and loose economic policies and enable true financial sovereignty for those who can’t access traditional banking, its early stage in the adoption curve and status as a young development has many remaining skeptical. As a result, a broader risk-off movement is expected to affect the Bitcoin market as well.

It’s unclear whether that would play out, however, as Bitcoin has demonstrated an ability to swiftly recover from somewhat harmful events. After China banned bitcoin mining and then bitcoin trading, the network is now stronger than before and has even more hash rate power backing its consensus protocol. An eventual sell-off in Bitcoin caused by a more aggressive take by the Fed might end up having the same result — a sharp upside after irrational fear is flushed out of the market.

Read Entire Article
Tags: BitcoinmagazineBlockchainCoin SurgesCryptocurrenciesMarket StoriesTrading
Share30Tweet19
wireopedia memeber

wireopedia memeber

Recommended For You

Crypto Exchange Binance to Remove Privacy Coins From 4 European Markets

by wireopedia memeber
May 31, 2023
0
Crypto Exchange Binance to Remove Privacy Coins From 4 European Markets

Multiple reports have revealed that Binance, the crypto exchange with the highest trade volume, has announced the removal of 12 privacy-focused cryptocurrencies from its markets in Spain, France,

Read more

Former House Rep blames industry outsiders for associating crypto with bank’s failure

by wireopedia memeber
May 31, 2023
0
Former House Rep blames industry outsiders for associating crypto with bank’s failure

According to Barney Frank, Signature Bank's only issue prior to regulators seizing control in March was "crypto-fear

Read more

Bitcoin played second fiddle as KAVA, XRP, TRX, RPL and RNDR led the crypto market in May

by wireopedia memeber
May 31, 2023
0
Bitcoin played second fiddle as KAVA, XRP, TRX, RPL and RNDR led the crypto market in May

Bitcoin is about to close its worst performing month since FTX collapsed, but a handful of altcoins posted noteworthy

Read more

US court says IRS has legal authority to access Coinbase users’ trading data

by wireopedia memeber
May 31, 2023
0
US court says IRS has legal authority to access Coinbase users’ trading data

A federal court ruled that the IRS has the legal authority to access Coinbase users’ trading data via a “John Doe” summons, and doing so is not a...

Read more

Coinbase CEO Drops Bombshell Prediction – Is China Set To Dominate Crypto?

by wireopedia memeber
May 31, 2023
0
Coinbase CEO Drops Bombshell Prediction – Is China Set To Dominate Crypto?

Coinbase CEO Brian Armstrong has warned that the US risks ceding its global financial leadership and innovation hub status if it fails to recognize the transformative potential of...

Read more
Next Post
Vivica A. Fox Had The Best Response To A Fan Who Asked If She Wanted To Adopt A Child So She Could “Leave A Legacy”

Vivica A. Fox Had The Best Response To A Fan Who Asked If She Wanted To Adopt A Child So She Could "Leave A Legacy"

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related News

Croatian Web3 startup offers lifetime Netflix and Spotify membership via NFTs

Croatian Web3 startup offers lifetime Netflix and Spotify membership via NFTs

July 8, 2022
Bitcoin Zeroes In On $18,000 – Can BTC Upside Breakout Materialize?

Bitcoin Zeroes In On $18,000 – Can BTC Upside Breakout Materialize?

December 14, 2022
Here’s Your First Look At The Official “Pachinko” Trailer — Based On The Book By Min Jin Lee

Here’s Your First Look At The Official “Pachinko” Trailer — Based On The Book By Min Jin Lee

February 24, 2022

Browse by Category

  • Blockchain
  • Breaking News
  • Business
  • Crypto
  • Crypto Market
  • Cryptocurrency
  • Defense
  • Entertainment
  • Finance
  • Health Care
  • Investing
  • Market
  • Politics
  • Strange
  • Technology
  • UK News
  • Uncategorized
  • US News
  • World
WIREOPEDIA

Wireopedia is an automated news feed. The Wireopedia AI pulls from sources with different views so you can see the various sides of different arguments and make a decision for yourself. Wireopedia will be firmly committed to the public interest and democratic values.

Privacy Policy     Terms and Conditions

CATEGORIES

  • Blockchain
  • Breaking News
  • Business
  • Crypto
  • Crypto Market
  • Cryptocurrency
  • Defense
  • Entertainment
  • Finance
  • Health Care
  • Investing
  • Market
  • Politics
  • Strange
  • Technology
  • UK News
  • Uncategorized
  • US News
  • World

BROWSE BY TAG

Bitcoin Bitcoinist Bitcoinmagazine Blockchain Blockonomi Breaking News Business BuzzFeed Celebrity News Coin Surges Cointelegraph Cryptocurrencies Cryptoslate Defense Entertainment Health Care insidebitcoins Market Stories newsbtc Politico Skynews Strange Technology Trading UK US World

RECENT POSTS

  • Chris Christie set to enter Republican presidential nomination race
  • Tributes paid to 16-year-old who died after suspected asthma attack at festival
  • Key extracts from ITV boss’s letter to culture secretary on Phillip Schofield departure
  • Defense hawks prepare to choke down debt deal — and Biden’s Pentagon budget
  • Crypto Exchange Binance to Remove Privacy Coins From 4 European Markets

© 2022 WIREOPEDIA - All right reserved.

No Result
View All Result
  • Home
  • Breaking News
  • World
  • UK
  • US
  • Entertainment
  • Business
  • Technology
  • Defense
  • Health Care
  • Politics
  • Strange
  • Crypto News
  • Contribute!

© 2022 WIREOPEDIA - All right reserved.

  • bitcoinBitcoin(BTC)$26,965.00-2.73%
  • ethereumEthereum(ETH)$1,861.08-2.26%
  • tetherTether(USDT)$1.000.02%
  • binancecoinBNB(BNB)$305.77-2.07%
  • usd-coinUSD Coin(USDC)$1.000.02%
  • rippleXRP(XRP)$0.50-3.04%
  • cardanoCardano(ADA)$0.371436-1.89%
  • staked-etherLido Staked Ether(STETH)$1,859.74-2.29%
  • dogecoinDogecoin(DOGE)$0.071268-1.58%
  • matic-networkPolygon(MATIC)$0.89-1.22%
  • solanaSolana(SOL)$20.54-2.67%
  • tronTRON(TRX)$0.075657-1.05%
  • polkadotPolkadot(DOT)$5.29-2.97%
  • litecoinLitecoin(LTC)$89.04-3.45%
  • binance-usdBinance USD(BUSD)$1.000.01%
  • shiba-inuShiba Inu(SHIB)$0.000008-4.08%
  • avalanche-2Avalanche(AVAX)$14.06-2.87%
  • daiDai(DAI)$1.00-0.03%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$27,005.00-2.70%
  • uniswapUniswap(UNI)$5.02-2.12%
  • chainlinkChainlink(LINK)$6.45-1.99%
  • cosmosCosmos Hub(ATOM)$10.45-3.45%
  • okbOKB(OKB)$45.51-3.47%
  • stellarStellar(XLM)$0.0904060.74%
  • bitcoin-cashBitcoin Cash(BCH)$112.31-2.21%
  • filecoinFilecoin(FIL)$4.66-3.29%
  • crypto-com-chainCronos(CRO)$0.059535-0.93%
  • vechainVeChain(VET)$0.020327-2.43%
  • nearNEAR Protocol(NEAR)$1.56-3.92%
  • algorandAlgorand(ALGO)$0.146718-2.95%
  • elrond-erd-2MultiversX(EGLD)$36.44-0.95%
  • axie-infinityAxie Infinity(AXS)$6.84-3.07%
  • terra-lunaTerra Luna Classic(LUNC)$0.000084-2.82%
  • compound-ethercETH(CETH)$37.30-2.30%
  • ftx-tokenFTX(FTT)$1.91-20.60%
  • terrausdTerraClassicUSD(USTC)$0.013503-3.78%