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On 28 November, the Dow Jones Industrial Average climbed 617 points, recording its biggest rally since March. Following the unexpected rebound of the US stock market, the encrypted market has increased in value by over $ 23 billion.
Federal Reserve Chairman Jerome Powell announced Wednesday that interest rates have fallen to a neutral level, reflecting the performance of the US market and economy in recent months.
Powell said:
"Interest rates are still low compared to historical standards and remain just below the broad range of estimates of the level that would be neutral for the economy, ie, neither accelerate nor slow down growth".
Happy investors
US President Donald Trump voiced his opposition to rising Federal Reserve interest rates and attributed the recent market sell-off to higher interest rates.
According to Rober Pavlik, manager of SlateStone Wealth, the withdrawal of the Federal Reserve interest rate is what investors in the US market have been waiting for and as soon as President Jerome Powell's statement was published, the US stock market has seen a large margin .
"[Pwell’s comments are] exactly what the market expected to hear. Obviously it has to do with the market's reaction to his previous comments. He had to go back, "said Pavlik.
In the last two weeks, reflecting the performance of the US stock market, the cryptocurrency market has declined sharply, losing more than $ 90 billion of its valuation at some point.
Some analysts have attributed the decline in the valuation of the encrypted market to the struggle between Bitcoin Cash and Bitcoin Cash SV, while some have argued that the market for future Bitcoins of CME and CBOE has largely influenced the trend in Bitcoin prices ( BTC).
A small portion of investors in the cryptography market has theorized that the sharp decline in confidence in US equity markets has led investors to liquidate high-risk assets such as cryptocurrencies, as investors feared a stock market crash and headed for outputs.
With the recovery of the US stock market, the cryptocurrency market has recovered over $ 23 billion, with Bitcoin recording the largest price increase on a single day since April, when the price of bitcoin rose from $ 6,000 to $ 8,000 in a few minutes.
Where the cryptocurrency market is going
With extreme volatility of $ 3,000 to $ 5,000, technical analysts in the cryptocurrency market generally believe that a restriction to the low region of $ 3,000 is still a possibility.
Bitcoin's recovery from $ 3,300 to $ 4,300 in the last two days has shown some decent momentum, but it has not been strong enough to conclusively decree that the Bitcoin fund has been established.
Although there is no direct correlation between the crypto and the US stock market, a US economy prosperous for the coming months could lead to more investors entering the cryptocurrency market, especially considering the January launch of the Bakkt futures by the ICE and Stock New York. Exchange.
Shutterstock foreground image.
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