amberrrr789
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Stay Tuned with MEXC Global (10/26/2022)
In the crypto winter, the price of bitcoin has been fluctuating between high 18k and low 19k for a month. But on Wednesday, Bitcoin climbed to a 6-week high of $21008.12, rising 3.25% in a single day as of this writing. What then are the causes? The price of BTC and ETH is impacted by a number of factors, including the Bank of Canada's (BoC) unexpected interest rate hike and the US's weaker-than-expected new home sales performance.
BTC/USDT Price: 1H (Source: TradingView)
People anticipated another 75-point increase in interest rates following increases of 75 basis points in September and 100 basis points in July of this year. Surprisingly, the Bank of Canada only raises interest rates by 50 basis points, to 3.75%. According to the bank's statement, there are some worries about the rate of economic expansion, and tightening monetary policy will depend on resolving supply problems and lowering demand.
The US Census Bureau announced a 10.9% decline in new home sales in September not long after the BoC raised interest rates. This is due to the fact that the mortgage rate has increased as a result of the much higher interest rates, making housing less accessible to first-time homebuyers.
The Federal Reserve's decision to slow down tightening monetary policy may be influenced by these weak economic indicators. In other words, this may be a hint of a prospective Bitcoin bullish trend (BTC). Things are better in pairs. Ether (ETH), the second-largest cryptocurrency by market cap, has increased even more this week, nearly exceeding $1600 today after increasing 6.38% in a single day.
Final Thoughts
Personally, I believe it is hard to handle excessive inflation without slowing the economy. Is this the time to buy Bitcoin and Ethereum? Sincerely, I'm not sure. Really, it all relies on what central banks decide. Do they desire to find a long-term solution to the inflation problem? despite the fact that many people are having trouble finding work and the market is down. Contrarily, if they opt not to enforce a tight monetary policy, inflation would worsen, devaluing currencies and harming the economy.
In the crypto winter, the price of bitcoin has been fluctuating between high 18k and low 19k for a month. But on Wednesday, Bitcoin climbed to a 6-week high of $21008.12, rising 3.25% in a single day as of this writing. What then are the causes? The price of BTC and ETH is impacted by a number of factors, including the Bank of Canada's (BoC) unexpected interest rate hike and the US's weaker-than-expected new home sales performance.
BTC/USDT Price: 1H (Source: TradingView)
People anticipated another 75-point increase in interest rates following increases of 75 basis points in September and 100 basis points in July of this year. Surprisingly, the Bank of Canada only raises interest rates by 50 basis points, to 3.75%. According to the bank's statement, there are some worries about the rate of economic expansion, and tightening monetary policy will depend on resolving supply problems and lowering demand.
The US Census Bureau announced a 10.9% decline in new home sales in September not long after the BoC raised interest rates. This is due to the fact that the mortgage rate has increased as a result of the much higher interest rates, making housing less accessible to first-time homebuyers.
The Federal Reserve's decision to slow down tightening monetary policy may be influenced by these weak economic indicators. In other words, this may be a hint of a prospective Bitcoin bullish trend (BTC). Things are better in pairs. Ether (ETH), the second-largest cryptocurrency by market cap, has increased even more this week, nearly exceeding $1600 today after increasing 6.38% in a single day.
Final Thoughts
Personally, I believe it is hard to handle excessive inflation without slowing the economy. Is this the time to buy Bitcoin and Ethereum? Sincerely, I'm not sure. Really, it all relies on what central banks decide. Do they desire to find a long-term solution to the inflation problem? despite the fact that many people are having trouble finding work and the market is down. Contrarily, if they opt not to enforce a tight monetary policy, inflation would worsen, devaluing currencies and harming the economy.
