Market analysis: Fed decides to raise interest rate by 0.25%, other notable economic data continues | coindesk JAPAN | Coindesk Japan

Bitcoin (BTC) rose after the US Federal Open Market Committee (FOMC) announced a 0.25% hike in interest rates.

Federal Reserve Chairman Jerome Powell’s comments show a positive outlook on price declines, but the Fed remains focused on meeting its 2% inflation target. That said, the 0.25% rate hike shows that the Fed’s aggressive rate hikes over the past eight months have paid off.

Bitcoin is hovering above $23,700, up more than 1% in 24 hours. Ethereum (ETH) saw a similar rally. Both have remained relatively flat over the past few days.

(TradingView)

For investors, however, there is some data to worry about.

According to the US Labor Department’s December Employment Trends Survey (JOLTS), the number of job openings rose to a five-month high. The Institute for Supply Management’s (ISM) Purchasing Managers Index (PMI) in January was down from the previous month but slightly better than expected.

Both data point to a strong U.S. labor market. Sustained strong employment data disappointed the Fed, suggesting the economy is not slowing enough to keep inflation under control.

In addition, there is still information to ponder, such as the number of initial unemployment claims on Thursday, or earnings from Amazon and Alphabet, and unemployment data on Thursday.

After more than three weeks of rallying, the cryptocurrency market is relatively calm and has remained in a tight range. The idea that “good economic news (strong productivity growth and robust job market) = bad news for risk assets such as cryptocurrencies” in the second half of 2022 has changed to “good news = minimal price action”. there is

Bitcoin’s range has narrowed over the past 10 days, but it continues to move up about 40% in January. Bitcoin is up more than 3% over the past eight days, but the Relative Strength Index (RSI) is down 15% over the same period. This trend is often called a bearish divergence and can portend price declines.

Ethereum is falling in tandem with the falling RSI. Price movements linked to technical indicators often point to a continuation of the trend. Ethereum, on the other hand, is in declining supply, and its price movements go against the traditional idea of ​​supply and demand.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: TradingView
｜Original: Crypto Markets Analysis: A Wave of Economic Data Rises on Wednesday With Fed Rate Decision