These 3 Top Cryptos Are Making Big Gains on Positive Federal Reserve News
- The Federal Reserve Chairman Jerome Powell recently gave a press conference outlining the Fed’s plans for the volatile market.
- Many cryptos saw a significant increase upon the news as evidenced by Cardano, Axi Infinity, and Ethereum Classic.
- With the war between Russia and Ukraine driving up oil prices, inflation, and market volatility, the Fed has mounting pressure to reduce inflation without plunging the economy into a full-on recession.
A bearish market and high inflation are key things for investors to keep an eye on.
The Fed’s news
This week, the Federal Reserve Chairman Jerome Powell gave a press conference outlining the Fed’s plans for the volatile market. It’s no secret that inflation has driven up the cost of living, gas, and food recently. Powell recognized this, stating, “Inflation is much too high and we understand the hardship it is causing and we’re moving expeditiously to bring it back down.” So in response, the Fed is making plans with the intent to bring inflation down, restore price stability, and maximize employment.
There was some concern in the market that the Fed would increase the interest rate by 75 basis points. This caused some volatility in the crypto world. This fear was quelled when Powell addressed it saying, “A 75-basis-point is not something that the committee is actively considering. I think expectations are that we’ll start to see inflation, you know, flattening out.” They did, however, move to increase interest rates by half a percentage point. Crypto markets, in turn, responded favorably to the news.
What has the announcement meant for key cryptos?
Top cryptos Cardano, Axie Infinity, and Ethereum Classic initially saw a major spike in price today, but have since leveled out and even dropped into the red. Upon the cusp of the announcement, each token was up between 4%-11%, but earlier today, according to CoinMarketCap, Cardano was down 9%, Axie Infinity was down 13%, and Ethereum Classic was down 5%.
The bottom line
With the war between Russia and Ukraine driving up oil prices, inflation, and market volatility, the Fed has mounting pressure to reduce inflation without plunging the economy into full-on recession. The Dow Jones and Nasdaq are also seeing chilling lows. And since these issues are still present, although being addressed, the volatility of the crypto market could continue. 2022 has primarily been a bearish market, whether that means it’s time to run or the perfect time to buy is up to the informed investor.
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