Cryptos rise after Fed; the market interprets that there will be no more rate hikes

(Sharecast News) - The cryptocurrency market rises on Thursday. Bitcoin (BTC) soars about 1.2% in the last 24 hours and is back at $29,500, while Ethereum (ETH) rebounds about 2% and is approaching $1,900. Despite this rebound, everything seems to remain the same in the market. Experts continue to point out that the positive movements, such as the Bitcoin ETFs of BlackRock or Invesco and the ruling in the Ripple case, have practically dissipated completely and cryptos are once again moving with a certain apathy in the market.

Cryptos´ recent rise coincides with the latest monetary policy decision of the US Federal Reserve (Fed), which has raised interest rates by 25 basis points. According to Edward Moya, senior market analyst at OANDA, the market seems to have interpreted that the central bank has decided to pause rate hikes for the remainder of 2023.

However, this may not be the case. The Fed has not closed the door to a further hike in the next six months and has spoken of a possible "further confirmation of policy that may be appropriate to return inflation to 2%," while reinstating its mission to return inflation to that target. Similarly, Fed officials stressed that they will take into account the cumulative tightening of monetary policy and the lag with which it affects economic activity, among other factors, in their upcoming decisions.

For his part, Fed Chairman Jerome Powell did not dispell market doubts and did not offer investors a very clear direction, although he warned that in September the decision may be to "raise or hold".While acknowledging that the central bank no longer expects a recession this year, he has also stressed that "it is difficult to know" when the cuts may come, while ruling out that the pivot will occur this year and Powell made it clear that the situation could remain the same in 2024.

John Leiper, chief investment officer at Titan Asset Management, asserted that Jerome Powell gave very little away in a very balanced and straight-forward press conference." "Regarding the future course of policy, Powell emphasised data dependency, citing the two intervening jobs and CPI reports and employment compensation index," he added.

In other altcoins market news, Ripple (XRP) has risen nearly 3%, as well as Cardano (ADA). Solana (SOL) soars 7%.

TECHNICAL ANALYSIS.

"The reversal lower from the 32185 level has seen BTC falling back below 3000 for now. This is a key psychological level and, while below here, risks are tilted towards a further move lower and a test of the 27415 level next, in line with bearish momentum studies readings," explained James Harte, market analyst at TickMill Group.

The expert also warned that, "should bulls find their feet today, 32185 remains the key near-term hurdle to overcome."

For his part, César Nuez, technical analyst at Bolsamanía, also defended this opinion and stressed the "weakness" observed in the queen cryptocurrency, which could end up seeing an attack on the $28,000 support.

"The key support is at $24,745. As long as it keeps trading above these prices, we will not see a sign of weakness that would complicate the current uptrend in which it has been moving since the latter stages of last year," he explained.