The hopes for an altcoin rally in the near future were shattered on Wednesday after the Federal Reserve held its benchmark lending rate unchanged at between 4.25 and 4.5 percent. According to the announcement, the Federal Reserve Committee will continue to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities.
The midterm macroeconomic uncertainty caused by the ongoing trade negotiations has pushed more institutional investors into the gold and Bitcoin markets. As a result, Gold price has continued to extend macro gains, amid its anticipated parabolic rally beyond $3,500/oz. Meanwhile, Bitcoin dominance scaled to a new local high of above 65 percent on Wednesday, during the mid-North American trading session.
According to crypto analyst Benjamin Cowen, Bitcoin dominance will scale further to 66 percent catalyzed by the Fed’s QT. The capital flight from the altcoin market towards stablecoins and Bitcoin has as a result delayed the much-anticipated altseason.
The ALT/BTC pair, which has historically been used to gauge the different crypto cycles including BTC and altseason, has leaned heavily towards further Bitcoin dominance. Crypto analyst Cowen anticipates the ALT/BTC pair to drop to 0.32 from 0.34 and eventually hit 0.25 in the near future.
Nevertheless, the Fed is expected to fall online with executive pressure and initiate Quantitative Easing in addition to interest rate cuts later this year. Wall Street experts anticipate QE later this year, which will likely trigger a major crypto parabolic rally akin to 2017.
The deal will be closed with $700 million in cash and 11 million in shares…
The Federal Reserve decided not to change interest rates on May 7, keeping them at…
In a world where crypto firms often clash with regulators, Ripple is choosing a different…
Solana (SOL), a notable player in the blockchain world, continues its remarkable trajectory with its…
Massive Early Gains: Shiba Inu, Pepe, and Why Pepeto Is Next in Line Shiba Inu…
The memecoin space has recorded a sudden rise of nearly 10% since the past trading…
