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Emphasizes:
- The Federal Reserve is close to eventually neutralizing interest rates after the December hike.
- US stocks, forex instruments and winnings in gold on Wednesday, but correction on Thursday.
- Bitcoin, Ethereum, XRP and the rest of the encrypted market react negatively.
The Federal Reserve announced the minutes of the December meeting, which revealed that they would follow a wait and watch approach for their interest rate hike plans. The US central bank suggested moderate rate hikes in December (up to 2.8%) but preferred to implement them only if justified. ]The Federal Open Market Committee (FOMC) confirmed that their rates were close to the range of its long-term neutral interest rate, implying a slowdown in their short-term increases.
At the same time, the Fed highlighted that the tightening of the market and the global economic slowdown have made it difficult to assert future policies.
US stocks, gold extend earnings – Forex corrections
The pause in the rate restriction cycle brought the US dollar to its minimum of three months. Instruments quoted against the greenback have naturally taken the news well, with US common stock, forex currency pairs, and it is worth noting a temporary increase. The Dow Jones closed at 91.67 on Wednesday, up 0.39%, while the S & P 500 and the Nasdaq Composite Index advanced 0.41 and 0.87% respectively. It was the fourth consecutive session for the aforementioned markets.
The price of gold was opened on Thursday on a positive note. The spot price grew 0.2 percent to $ 1,289.50 an ounce starting at 1200 GMT. US gold futures rose 0.4 percent to $ 1,297.20 an ounce.
The Forex market is now following a corrective course. EUR / USD corrected downward towards 1.1500 from overbought levels, while GBP / USD fell to 1.275 from its morning open rate. The mediocre Asian data have prevented the Japanese Yen from benefiting from the Fed's accommodating minutes. The USD / JPY rate set new weekly lows this Thursday, now at 107.80-107.75 109.00-region area.
Bitcoin, Ethereum, Ripple Drop; Tron Stable
The cryptocurrency market, driven by its Bitcoin locomotive, began Thursday with a loss of $ 10 billion, eroding its recent upward fluctuations.
Bitcoin drops to $ 3,750
Bitcoin's price set its intra-day low at $ 3,750 on Coinbase after failing to extend its earnings over $ 4,000. The CCN yesterday observed a Doji formation in the chart and feared a potential withdrawal as the price confirmed its last attempt in its bearish pennant formation.
The US dollar is still rising and Bitcoin's offer to become a safe haven is again challenged by a more dominant gold. The digital currency seems to correct the line of global forex sentiment. It could very well run the courts in the short term and try another rally to the psychological level of $ 4000. In a bad scenario, bitcoin could extend its pullback action to form a double bottom situation near $ 3,100.
Ethereum dives over 14%
The negative sentiment in the Bitcoin market is rippled through alternative cryptocurrencies, with Etheruem leading the trend with a decline of 14%.
The ETH / USD rate dropped to 129.57 from its opening session at $ 150.92. Once again, the decline could only be a correction after a long bullish trend seen since mid-December. The pair is witnessing 112.84, a break that could put it in a double bottom scenario towards 80.41 – very similar to Bitcoin.
XRP corrects 9%
Ripple (XRP), despite the 9% decline on Thursday, continues to remain at a distance. It is now trading at 1.92 percent from its session minimum to 0.34417 while it is inside a huge downward triangle. XRP, more or less, seems less dependent on long-term Bitcoin price behavior and its future price action largely depends on its usefulness.
Bullish tron in minor correction
After rising close to 50% in a week, Tron is undergoing a natural downward correction from his overbought area. The TRX / USD rate fell 4.34% over a 24-hour time horizon, now trading at 0.027. The pair is likely to find some support around its 200-period moving average curve in red. A breakdown of power will put the same pressure on the 50-period moving average in blue.
At the same time, Bitcoin Cash and Litecoin fell by 15% and 13% respectively. Stellar, EOS and Bitcoin SV are also down 7.5, 10 and 11 percent, respectively.
Click Here for a real-time or bitcoin price table Here to review our latest cryptic market coverage.
Shutterstock foreground image. TradingView Charts.
