Bitcoin, Ethereum, Dogecoin Muted As Fed Announces Tapering — But This Coin Is Up 78%

Bitcoin BTC/USD and Ethereum ETH/USD were largely flat Wednesday evening as the global cryptocurrency market cap rose 0.82% to $2.75 trillion.

What Happened: The largest cryptocurrency by market cap fell 0.37% to $62,844.63 over 24 hours. For the week, BTC has risen 7.37%.

ETH traded 0.13% lower at $4,571.23 over 24 hours. Over a seven-day trailing period, it has shot up 16.04%.

So-called “Ethereum-Killer” Solana rose 10.4% over 24 hours to $243. The coin has risen 31% over the last seven days. SOL touched a fresh all-time high of $246.32 on Wednesday.

Dogecoin DOGE/USD fell 1.88% to $0.27 over 24 hours. For the week, it has risen 11.9%.

DOGE is now the ninth-largest cryptocurrency with a market cap of $35.38 billion and is ahead of rival meme coin Shiba Inu, which is placed on the eleventh spot with a market cap of $29.44 billion.

Shiba Inu fell 20.11% to $0.00005457 over 24 hours and has fallen nearly 30% for the week.

The top 24-hour gainer at press time, as per CoinMarketCap data, was Telcoin, soaring 78.47% to $0.032. Over the last seven days, the coin has shot up 72.35%.

Telcoin has witnessed the second-largest year-to-date gains of 18745.74% behind Axie Infinity, which rose 24057.14% in 2021.

See Also: How To Buy Bitcoin (BTC)

Why It Matters: The loss of exuberance in cryptocurrencies came as the U.S. Federal Reserve said Wednesday that it would begin tapering its monthly asset purchases before the end of November by $15 billion per month unless the economy warrants otherwise.

The central bank left the target fed funds rate unchanged between zero and 0.25%.

The resulting lower liquidity could dampen investors’ appetite for riskier assets such as cryptocurrencies. Bitcoin trading volumes declined 5.8% to $35.66 billion over 24 hours.

Bloomberg TV anchor Caroline Hyde noted on Twitter that the apex coin did not like the news.

#bitcoin didn't like the #Fed tapering news... pic.twitter.com/WbnC4cOOPk

— Caroline Hyde (@CarolineHydeTV) November 3, 2021

Some analysts are of the view that what matters is how the apex cryptocurrency investors react to dips.

“We haven’t even seen an episode of FOMO (fear of missing out) yet, so the sharpest bull-run part of the rally is yet to come,” said Alex Kuptsikevich, an analyst at FxPro, reported CoinDesk.

“Despite BTC’s very sluggish performance in recent days, what still draws attention is the apparent support on dips.”

Meanwhile, $540 million in ETH options are set to expire Friday and this could take the second-largest coin to the $5,000 levels, reported CoinTelegraph. 

The $300 billion put options dominate the weekly expiry by 20% to the $240 million call instruments but the 0.80 call-to-put ratio is misleading because the recent high ETH prices are likely to wipe out bears provided the coin’s price remains above $4,500, noted CoinTelegraph.

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