Bitcoin, Ether See ‘Brewing’ Mega Upsurge as US Makes Biggest Interest Rate Rise in 22 Years

CME Launches Micro-Sized Bitcoin And Ether Options As Crypto Market Cap Pushes Past $2.2 Trillion

On Wednesday, the Fed raised a rare half percentage point interest rate as it races to shrink its $9 trillion asset portfolio.

The move which was announced by Fed’s chairperson Jeremy Powell after a two-day policy meeting is the latest and one of the most aggressive Fed tightening of monetary policy in decades and is aimed at reducing the adverse effects of an economic stimulus that greatly led to ballooning inflation.

“Inflation is much too high and we understand the hardships it is causing” Powell was quoted saying during the news conference Wednesday, “We’re moving expeditiously to bring it down”.

Powell, who promised a “soft or softish” landing further noted that they intended to raise rates in the next couple of meetings stating that the economy was strong and positioned to handle a tighter monetary policy.

Albeit causing ripples for the past few days leading to Bitcoin falling below $38,000 with traders opting to take some profits ahead of the Fed meeting, today’s announcement also catapulted crypto prices.

Two hours after the meeting, major coins experienced an uplift with Bitcoin surging over 5.8% to $39,784. Ethereum also grew by over 6% to trade at $2,957 with most altcoins surging by over 10%.

Bitcoin’s daily chart also printed an RSI bullish divergence, signaling bulls are ready to control the market again. On Tuesday, Santiment, a crypto on-chain analytics platform had mapped out a tight “wedge” pattern on BTC and ETH daily charts.


Although Santiment warned that it was early to speculate which direction price could head, historically, a falling wedge pattern is often followed by a bullish trend once price breaks out in the north of that tight squeeze.

“Once the star aligns (meaning the majority of participants start showing the same behavior) the important price action will follow shortly,” Santiment wrote in a weekly blog.

As of reporting, this trend seems to have picked up quite well with BTC rising to tap the upper boundary of the wedge.

The firm further pointed out some on-chain discrepancies, especially on the behavior of “daily active addresses” on both BTC and ETH asking traders to be on the lookout as something was brewing. It shared a chart showing contrast in how there was a massive spike in ETH network activity or a “massive spike of hope” despite Bitcoin’s chart showing minimal activity.


As per the firm, that hope was dangerous as it had now brought immense uneasiness to those who had bought then. That, in addition to BTC’s low network activity, would guarantee a price decline in 95% of the cases according to Santiment. However, “If that happens, we could see the final capitulation, which is a healthy sign,” the firm wrote.


Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
On Key

Related Posts

Overvalued or Undervalued? How much is Ethereum actually worth?

Ethereum (ETH) is one of the most popular and well-known cryptocurrencies. For the market, the Ether price is the second most important value after the Bitcoin. At the moment we saw a sharp drop in the value of Ethereum in 2022. But is Ethereum undervalued or overvalued today? In this article, we will tell you how much Ethereum

ETC Price Analysis: What is Ethereum Classic and its Battle With Ethereum

Ethereum Classic is a fork of Ethereum. People who closely observed the crypto world in 2016 know about the Ethereum hard fork. What is dramatic about the happening is that the once-vaunted “code is law” philosophy has been broken, pushing major waves in the crypto world. This post is all about ETC price analysis and its battle

Andreessen Horowitz Announces $4.5 Billion Fund for Crypto, Blockchain Sector

At a time when the digital assets market is witnessing an acute downturn, American venture capital fund Andreessen Horowitz has announced a new $4.5 billion fund for crypto and blockchain investments. This is the fourth fund from the Silicon Valley fund for the crypto asset class. Together, the fund now accumulates $7.6 billion. Andreessen’s first

Bullieverse Integrates ChainLink VRF for Bear Hunt NFT Game

The Bullieverse metaverse on Ethereum and Polygon have integrated the ChainLink Verifiable Random Function. The decision was made for a fair distribution of NFTs in the new Bear Hunt 3D game. Moreover, the function will help users verify the transparency of the game while also making sure everyone stands an equal opportunity to win the