Federal Reserve Financial News

On Wednesday, the US Federal Reserve (Fed) raised rates by 75 basis points,in line with most analysts’ forecasts. (This is a developing story and is being constantly updated.)

Ethereum's native token Ether (ETH) is showing signs of bottoming out as ETH price bounced off a key support zone. Notably, ETH price is now holding above the key support level of the 200-week simple moving average (SMA) near $1,196. 

Bitcoin plunged to the lowest in about 18 months after the freezing of withdrawals by the Celsius lending platform added to concern that systemic risk in the crypto ecosystem will accelerate the digital-asset market meltdown. The world's largest digital token tumbled as much as 15% to $23,336 — its lowest since December 2020. Other cryptocurrencies also declined as a broader sell-off continued. The MVIS CryptoCompare Digital Assets 100 Index, which measures 100 of the top tokens, dropped as much as 15%. And the total market value, which topped $3 trillion in November, was $1.02 trillion as of 9:48 a.m. New York time on Monday, according to CoinGecko. «The fundamentals to support stabilization and recovery just aren't there,» said Steven McClurg, co-founder and CIO at crypto fund manager Valkyrie Investments. «Things can and likely will get worse before they get better.»

The bitcoin (BTC) and crypto market came under heavy selling pressure on Monday, fueled by fears in nearly all global risk markets related to high inflation and what the US Federal Reserve (Fed) might do to tame it. At the same time, the drama surrounding crypto lending platform Celsius(CEL) is adding fuel to the fire.

Veronika Dolar, Assistant Professor of Economics, SUNY Old Westbury._______

New York: Bitcoin and Ether pared losses, after falling earlier on Sunday amid a broader retreat by the cryptocurrency complex in the wake of data showing US inflation hitting a fresh 40-year high. Ether declined as much as 6.4% to $1,424.40, its lowest level since March 2021, while Bitcoin dropped to as low as $26,876.51, its lowest since May 12.

The largest crypto by market cap has been struggling to break over the $31,000 level, indicating the low-risk appetite among the crypto traders since the market and investors have still not recovered from the crash of the previous month. Even though Bitcoin managed to hover around the $30,000 mark throughout the week, it was a bit of a volatile week, but on a larger time frame, the market remained largely consolidated. The coming week could be crucial for the cryptocurrency market in terms of the momentum.

The total crypto market capitalization has been trading in a descending channel for the past 29 days and currently displays support at the $1.17 trillion level. In the past 7 days, Bitcoin (BTC) presented a modest 2% drop and Ether (ETH) faced a 5% correction.

crypto traders are finding their Bitcoin investments underwater and may be ready to throw in the towel. The number of anonymous Bitcoin addresses in the money, meaning those that acquired their holdings at prices below today's, has reached lows not seen since March of 2020, according to Bequant, a digital-asset firm. The level, currently hovering around 51%, «points to capitulation,» though bear markets in 2015 and 2018 saw even lower lows, wrote Martha Reyes and Emiliano Bruno in a note. Crypto prices have been in a slump this year as the Federal Reserve withdraws stimulus and hikes rates to combat inflation. The environment has been toxic for all manner of riskier assets, including richly valued tech companies. But cryptocurrencies have been hit particularly hard, with Bitcoin losing more than a third of its value this year, and others, including Ether, shedding 50%. Even Bitcoin miners have started to offload tokens they had hoarded as many are seeing few signs prices could recover soon.

US digital asset-focused bank Custodia has filed a lawsuit against the Federal Reserve (Fed) Board of Governors and the Federal Reserve Bank of Kansas City, accusing the two institutions of“unlawfully” delaying its application for a master account with the Fed for 19 months.

The St. Louis Federal Reserve stirred up a mix of amusement and curiosity from the crypto community on Tuesday, May 7, after publishing a post showing how the cost of eggs in Bitcoin (BTC) has fluctuated over the last 14-months compared to the U.S. dollar. 

Cardano (ADA) was among the best performers among the top cryptocurrencies on June 6 as traders assessed a key upgrade that promises to enhance its blockchain's smart contract capabilities.

Serkan Arslanalpis Deputy Division Chief in the Balance of Payments Division of the International Monetary Fund (IMF)’s Statistics Department; Barry Eichengreen, George C. Pardee and Helen N. Pardee Professor of Economics and Political Science, University of California;Chima Simpson-Bell is an Economist in the IMF’s African Department._______

Solana's (SOL) price dropped on June 3, bringing its net paper losses down to 85% seven months after topping out above $260.

Regulation is needed to open the crypto ecosystem to a larger public, United States Federal Reserve Board Governor Christopher Waller told an audience at the SNB-CIF Conference on Cryptoassets and Financial Innovation in Zurich, Switzerland. Financial intermediaries can help manage risk for new crypto users, but cannot eliminate it, Waller said, and new and fast-growing financial products need public confidence to survive.

Ether’s (ETH) market structure continues to be bearish despite the failed attempt to break the descending channel resistance at $2,000 on May 31. This three-week-long price formation could mean that an eventual retest of the $1,700 support is underway.

Get ready for fundamental change in money and payments, John Williams, president and CEO of the Federal Reserve Bank of New York, told central bank officials, academics and financial industry leaders from around the world Wednesday. Williams delivered the opening remarks at an invitation-only workshop on monetary policy implementation cohosted by the New York Fed and Columbia University.

Cardano (ADA) price climbed from $0.48 on May 30 to as high as $0.68 on May 31—a 45% rally in less than 48 hours. But ADA/USD failed to extend its rally further upward and dropped by almost 13.75% from its weekly high.

As America’s inflation rate remains at a level unreported since the 1980s, decreasing the population’s purchasing power, the US Treasury Secretary Janet Yellen has admitted to being wrong about "the path inflation would take."

The Federal Reserve is starting the process of paring back its $9 trillion balance sheet that ballooned in recent years in a move called Quantitative Tightening (QT). 

“The Market Report” with Cointelegraph is live right now. On this week’s show, Cointelegraph’s resident experts discuss how the United States Federal Reserve and its chair, Jerome Powell, influence the crypto market.