The digital currency market rushed despite the stormy weather, due to the recent bankruptcies and collapses that hit the markets, following Jerome Powell’s statements yesterday, which shifted the risk appetite of traders.
The digital currencies had entered a violent wave of losses following the collapse of the famous FTX platform, and a few days later, Block Fi joined the bankruptcy list as well.
However, the statements of the US Federal Reserve Chairman that the US Central Bank is likely to reduce the pace of raising interest rates, starting from the next meeting in December 2022, upset the balance.
And after Bitcoin fell near the levels of $ 15.5 thousand, it jumped back within 24 hours, to exceed the levels of $ 17 thousand.
The market value of digital currencies increased during these moments of transactions, today, Thursday, by more than $ 40 billion, to reach levels close to $ 870 billion.
And the digital currencies fell below the levels of 800 billion dollars, before they rebounded slightly, and remained for a while hovering near the levels of 820 billion dollars.
The dread dissipates
Jerome Powell’s statements prompted the market to get rid of the feelings of fear that dominated the markets after the fall of digital currencies, especially after the recent bankruptcies.
Meanwhile, the Crypto Fear & Greed Index, which measures the psychology of crypto market participants based on tracking bitcoin movements, posted a positive performance.
During these moments of Thursday’s trading, the index recorded the 27-point levels, which reflect the market’s presence in the fear zone after staying for a long time in the intense panic zone.
Bitcoin rises during these moments of transactions, today, Thursday, within the range of 2%, while yesterday, Wednesday, it rose by more than 4%, to jump to the highest levels of $ 17 thousand, reaching levels of $ 17.11 thousand.
Bitcoin’s weekly gains widened, rising by more than 3%, while during the month of November, Bitcoin fell by more than 17% and by 11% in sixty days, while the first currency fell 65% since the beginning of the year.
And after Ethereum, the second largest digital currency, was hovering near levels of $ 1.1 thousand, it succeeded in recording strong gains during yesterday’s trading, Wednesday and Thursday.
After Powell’s statements, Ethereum increased by more than 7%, while it is now rising in the range of 2%, as it approaches levels of $1.3 thousand, while its weekly gains widened to 6%.
During the November dealings, Ethereum lost 20% of its value, and fell by 66% since the beginning of the year, and its market value now reached about $ 157 billion during these moments of Thursday’s dealings.
Ripple, Binance and Dogecoin rose strongly on the eve of Wednesday’s trading. However, trading today, Thursday, is witnessing some apathy for the major currencies, as it records marginal declines.
Polygon Matic rose 6% to levels of $0.92, while Cardano rose by 2% at levels of $0.31, and Solana and Trax increased by 2% and 3%, respectively.
The article does not express a recommendation or nomination, but merely monitors the fluctuations of the market, as trading in digital currencies involves high risks, including the risk of losing some or all of the investment amount, noting that it is not fully subject to the bodies and markets.