Complete Gate Post tasks to upgrade your rank

Credit Ranking

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/image/article/16795350590323.jpg)

## Crypto Daily Digest: Wall Street Traders Anxious as Powell Resists Rate Cuts, <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> Drops Below $27k

Good morning, traders! Let’s seize this Thursday relentlessly and make the most of it! 🚀

On Wednesday, Treasury Secretary Janet Yellen's announcement that the government would not provide broad deposit insurance to stabilize the banking system caused financial stocks to plummet, and Federal Reserve Chairman Jerome Powell's statement dashed hopes for rate cuts this year, causing anxiety among Wall Street traders. The S&P 500 erased a rally that approached 1% and ended the day with a 1.7% decline, while the Treasury two-year yields fell sharply by 23 basis points to 3.94%, and all 22 stocks in the KBW Bank Index dropped by nearly 5%.

Despite increasing expectations for rate cuts, Powell stated that officials do not anticipate rate cuts this year and will increase rates more than anticipated if necessary. The Federal Open Market Committee voted unanimously to increase its target for the federal funds rate by a quarter percentage point to a range of 4.75% to 5%.

As a result of the Fed's resistance to cutting interest rates this year and the downturn on Wall Street, Asian equities are facing headwinds on Thursday, and government bond yields in the region have opened lower, though the weakness of the US dollar may assist assets in Asia.

<a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>'s value decreased to below $27,000 as the US Federal Open Market Committee (FOMC) announced another quarter-point interest rate increase, citing concerns about inflation. Despite the negative effects of the rate increase on risk assets, analysts believe that <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> may still benefit as it is viewed as both a leading risk-on asset and a financial lifeboat in the event of a banking crisis. However, the recent banking crisis may also bring volatility in the future as the market marches towards a recession or a credit event.

In other news, the US Securities and Exchange Commission (SEC) has filed a lawsuit against Justin Sun, the <a href="/price/tron-trx" target="_blank" class="blog_inner_link">TRON</a> Foundation, the <a href="/price/bittorrent-btt" target="_blank" class="blog_inner_link">BitTorrent</a> Foundation, and <a href="/price/bittorrent-btt" target="_blank" class="blog_inner_link">BitTorrent</a> for allegedly selling and airdropping unregistered securities, market manipulation, and fraud. The SEC accused Sun of inflating the trading volume of <a href="/price/tron-trx" target="_blank" class="blog_inner_link">TRON</a>'s native token, TRX, through an extensive wash trading scheme, where his own employees conducted more than 600,000 wash trades of TRX between two crypto asset trading platform accounts he controlled. 

 

## Topic of the Day: The Two Crypto Factors That Trumped the FOMC's Interest Rate Decision

The FOMC's decision to raise interest rates is significant for the financial markets, but in the world of crypto, the impact of stablecoin supply and the profitability of short-term <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> investors are likely to be just as important for investors. 

![](https://gimg2.gateimg.com/image/article/1679535676Untitled0323 00.png)

One of the key indicators is the high profitability of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> held by short-term investors, with 97.5% of the circulating supply now in profit due to the current price exceeding their average cost basis, per Coindesk report.

However, this situation could change rapidly if investors view the comments made by Federal Reserve Chair Jerome Powell as bearish, leading to additional selling pressure on <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>. On the other hand, if the market interprets his remarks as bullish, then short-term holders may hold their positions and move into the long-term holder category, signaling their belief in the future price of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>.

The total supply of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> held by long-term holders has also increased by 5% over the past year, indicating strong investor confidence in the digital asset. Long-term holders tend to be less likely to sell or spend their <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>, providing a supportive base of relatively illiquid supply that can undergird the price of BTC.

In addition to monitoring the behavior of short-term and long-term <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> holders, investors should also pay attention to the supply of stablecoins. stablecoins are important because they serve as a mechanism by which a large portion of digital assets like <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> and ether are purchased. 

![](https://gimg2.gateimg.com/image/article/1679535708Untitled0323 0.png)

The aggregate supply net position change of the four top stablecoins has steadily contracted since April 2022, per Glassnode Data. An expansion of stablecoin supply would indicate an increase in capital available for deployment, which would be attractive to investors with a bullish view on BTC.

Overall, investors should keep a close eye on these crypto indicators to determine the future direction of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>'s price. While the FOMC's decision to raise interest rates may have an impact on the broader financial markets, it is the behavior of short-term and long-term <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> holders, as well as the supply of stablecoins, that will likely have a more significant effect on the digital asset.

## <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> (BTC) $27290.9 (+0.16%) - Neutral Outlook

 **Overview:**

- ***Closest daily support zone: 26909 - 26593***
- ***Closest daily resistance zone: 27459 - 27760***
- ***Key Level: 26283 (Weekly Close of Dec. 21 - 28, 2020)***

<br>![](https://gimg2.gateimg.com/image/article/1679535173Untitled0323 1.png)

![](https://gimg2.gateimg.com/image/article/1679535192Untitled0323 2.png)

On the weekly chart, BTC experienced its initial rejection from a resistance zone between the weekly Fibonacci extension level of 28540 and the monthly level of 29300. With the RSI signaling overbought conditions, it is likely that BTC will revisit this level before a significant retracement is necessary to gain enough momentum to surpass a previous supply zone [29917 - 32400]. 

On the daily timeframe, Wednesday's red candle demonstrated that bulls still outweigh bears, for now, as it retraced from a low that nearly engulfed the candle on Mar. 18. As of Thursday's trading, BTC is at a critical juncture. 

If it falls back to the daily demand zone [26909 - 26583], bears will likely exploit the momentum to push it down to the daily golden zone [25941 - 25512], and subsequently to the weekly golden zone [25100 - 24325].

However, if bulls can prevent BTC from reaching the demand zone and manage to retest the daily supply zone [27969 - 28385], there are two possibilities: 

1. BTC will break through and touch the monthly level of 29300; 

2. BTC will experience an extended period of consolidation between the daily supply and demand zones. It should be noted that the daily RSI indicates that buying momentum has been decreasing, so traders should avoid chasing prices and instead wait patiently for the best entry point.


<br> **Daily Resistance zones**

1. 27459 - 27760
2. 27969 - 28385
3. 28540 - 29300


<br> **Daily Support zones**

1. 26909 - 26593
2. 25941 - 25512
3. 25100 - 24325



<div class="blog-details-info">
<div>Author:** Peter L.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

简体中文

English

Tiếng Việt

Español

Русский язык

Français

ภาษาไทย

日本語

Indonesia

Deutsch

عربي

Português (Portugal]

Português (Brasil]

繁體中文

Українська

Federal Reserve_s quarter-point rate increase caused anxiety among traders, with Bitcoin dropping below $27,000, but analysts suggest it may still benefit as a leading risk-on asset in a banking crisis. Short-term and

福利中心

铭文导航-铭文Launchpad

铭文-铭文导航

铭文-web3startup

新币挖矿

小红花-Exchange-Startup

交易-创新交易

交易-盘前交易

打新

小红花-Learn & Explore-博客

小红花-Learn & Explore-快讯

币圈-币圈-未来事件

小红花-Learn & Explore-聊天室

小红花-Learn & Explore-直播

小红花-Learn & Explore-动态

年度账单

币圈

Gate OTC

芝麻金融-更多-财富管理

机构-APIs

机构-大宗交易服务

机构-经纪商项目

全球做市商计划

机构-托管和资产管理

机构借贷

机构-做市商项目

小红花-Promotions-机构和VIP服务

量化基金

机构-基础架构

机构-交易

机构-金融

结构化产品

机构-主页

衍生品-统一账户

芝麻金融-更多-抵押借币

vip服务

机构

策略跟单

现货跟单

合约跟单

跟单

量化策略-探索

量化策略-进阶

量化策略-基础

机器人广场

创建机器人

探索机器人

杠杆网格

无限网格

期现套利

组合指标策略

智能调仓

现货马丁格尔

合约网格

现货网格

交易机器人

芝麻金融-更多-ETH2.0挖矿

芝麻金融-更多-法币理财

USDE挖矿

链上赚币

芝麻金融-理财-双币宝

芝麻金融-理财-定期理财(屯币)

芝麻金融-理财-结构性理财

芝麻金融-理财-理财宝

芝麻金融-理财-余币宝

GT挖矿

芝麻金融-更多

芝麻金融-理财

赚币

模拟交易

衍生品-实盘跟单

衍生品-期权

衍生品-交割合约

衍生品-永续合约

衍生品-合约中心

合约入门

合约活动

衍生品

交易-量化策略

交易-杠杆ETF

交易-杠杆交易

交易-闪兑

交易-现货交易

交易

行情

买币-gateCard

卖币

买币-快捷交易

买币

买币-paywith

法币定投

小红花-推广

新手指南

活动中心

小红花-Learn & Explore-学院

任务广场

小红花-Exchange-最新公告

小红花-Exchange-帮助中心

小红花-Exchange-交易所

gate商店

小红花-Promotions-推荐官计划

小红花-Promotions-邀请计划

小红花-promotions-代理商

cextg小程序

储备金

合作伙伴

小红花

web3

Daily News | Crypto Traders Anxious as Wall Street Plummets and Bitcoin Reacts to FOMC Interest Rate Increase