Major cryptocurrencies experienced a surge on Tuesday, following remarks made by Federal Reserve Governor Chris Waller at an event in Washington, D.C.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Bitcoin BTC/USD | +2.11% | $37,949 |
| Ethereum ETH/USD | +1.34% | $2,051 |
| Dogecoin DOGE/USD | +3.45% | $0.080 |
What Happened: Waller believes that the U.S. Federal Reserve policy is currently positioned correctly.
“Something appears to be giving, and it’s the pace of the economy,” said Waller, pointing out that data from October and current forecasts for the remainder of the fourth quarter suggest a moderating trend. He also observed that inflation data is moving in a favorable direction.
After delivering his prepared remarks, Waller mentioned that there may be a strong argument for rate cuts within a few months if inflation continues to decline.
Waller’s colleague, Michelle Bowman, also said at a separate event that rates will need to increase to control inflation.
Top Gainer (24 Hour)
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EDT) |
| Sei | +28.72% | $0.28 |
| Terra | +18.35% | $0.0001016 |
| FTX | +15.48% | $4.15 |
The global cryptocurrency market cap currently stands at $1.41 trillion, reflecting a decrease of 0.70% in the past 24 hours.
Stocks rose on Tuesday, resuming their November rally fueled by optimism sparked by comments from a Federal Reserve official.
This renewed hope stems from Waller expressing confidence that the current policy is effectively positioned to slow the economy and bring inflation back to 2%.
With the Federal Open Market Committee’s policy meeting on the horizon, market expectations are leaning towards a steady key lending rate, which in turn led to a dip in U.S. Treasury yields. The yield on the 10-year note dropped by nearly 6 basis points, landing at 4.33%.
See More: Best Cryptocurrency Scanners
Analyst Notes: Eli Taranto, Executive Director at EQI Bank, in a note seen by Benzinga, said, "Data released Tuesday showed consumer confidence improved in November, and the Dow has been climbing today, which may signal good news for BTC. "
He added, "While all eyes are still on the Fed’s meeting, and some headwinds still possible, the approaching halving does seem to be converting traders into investors and HODLers at least until April 2024. The Santa Rally may push Bitcoin further beyond the $40K range but that all depends on a number of factors."
Cryptocurrency analyst Michael Van de Poppe suggests that Bitcoin is continuing its upward trend.
"The trend remains to be upwards, while the resistance has been tested several times now. A breakout is very likely to occur."
Pseudonymous crypto analyst Credible Crypto predicts that Bitcoin is currently in a phase of a gradual climb, laying the groundwork for a potential explosive upward surge. This trader observes that Bitcoin has been steadily ascending for approximately a month, indicating the likelihood of an imminent breakout rally.
"No doubt in my mind, the break from this vertical accumulation will be explosive. The only question that is left is when it will blow. When it does, we ain't stopping at $40,000 either in my opinion. Bitcoin is crawling now so that it can sprint later."
According to Santiment, an on-chain data analytics firm, Bitcoin traders are profit-taking, as growth in existing wallets with more than 0 BTC has slowed. Meanwhile, Dogecoin wallets are surging and Cardano wallets are dropping in number. Drops are a sign of capitulation, often foreshadowing price jumps.
Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions From Twitter Users
Photo via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
