A modest crypto rally followed Wednesday after the Bank of Canada surprised investors with a smaller-than-expected rate hike and U.S. new home sales remained weak.
After widely expected to raise its benchmark interest rate by 75 basis points (after raising it by 75 points in September and 100 points in July), the Bank of Canada instead raised rates by just 50 basis points to 3.75%. .Bank accompanying statement “Future rate hikes will be influenced by our assessment of the extent to which monetary policy tightening is working to slow demand and how supply issues are being resolved,” he said.
Shortly after the Bank of Canada news, the U.S. Census Bureau reported: 10.9% drop New home sales in September continued to decline as buyers continued to cut back in the face of sharply rising interest rates. Weak economic data could help the US Federal Reserve follow suit with the Bank of Canada and slow the pace of monetary tightening.
Two items helped Bitcoin (Bitcoin) continued its modest rally this week, with the largest cryptocurrency market value in the past 24 hours rising 7.5%, surpassing $21,000 for the first time since mid-September. At the time of writing, the price had him back at $20,850.
Bitcoin Exceeded $20,000 On Tuesday, it broke through the price range that had effectively served as the upper end for the past few weeks.
IG North America CEO JJ Kinahan told CoinDesk TV. “Starter” While $20,000 isn’t Bitcoin’s primary technical level, it is “a slightly larger level psychologically and is about to bend the fulcrum.”
Earlier in the day, the crypto market maximum Since July 2021, there have been short-term liquidations (bets on rising prices), and traders have suffered huge losses as prices rise.
ether (ethereum), the second-largest cryptocurrency by market value, has gained even more this week, up 15% from the previous day to nearly $1,600.
According to Sheraz Ahmed, managing partner at STORM Partners, a large short-term liquidation could catalyze a long-term rally.
Ahmed said it could be due to a “familiar feeling” that bitcoin is destined to “get out of its current stagnation.”
“BTC never likes to stay too much in one place at a time,” he said. “FOMO may just be starting”