The crypto market has responded well to the Federal Reserve’s acceleration in tapering, and Layer 1 coins are among the biggest winners.
,,,, and other Layer 1 coins saw double-digit gains today.
Layer 1 project rally at the Fed meeting
Layer 1 projects are market leaders again. According to data from CoinGecko, Avalanche is up 15.4% today, Terra is up 10.1% and is up 9.9%. Other low capitalization projects like Fantom and Elrond have also rebounded with record double-digit profits. Kadena, a Proof-of-Work Layer 1 project outperforms all of them with a 21.6% gain.
The two largest Cryptocurrencies and, are also trading in the green, although their leaps were less significant. Still, the market is showing positive momentum after a relatively sluggish December, likely due to Wednesday’s Fed meeting.
The US Federal Reserve held its last Open Market Committee of the year yesterday, in which it announced it expected three rate hikes in 2022. Fed chairman Jerome Powell said the throttling would accelerate to $ 30 billion a month instead of the current $ 15 billion.
Tapering is a strategy used by central banks to reduce the effects of quantitative easing. The focus is on interest rates and slowed down securities purchases, topics that have been increasingly in the focus of investors since the beginning of the COVID pandemic.
The Fed’s balance sheet has doubled from $ 4 trillion to $ 8 trillion since January 2020, with excessive money printing acting as a catalyst for asset appreciation. Stocks like Tesla (NASDAQ 🙂 and Apple (NASDAQ 🙂 hit record highs last year, and crypto assets have also benefited from the unprecedented macroeconomic environment.
Many celebrated investors like Paul Tudor Jones have taken refuge with since March 2020 Bitcoin wanted as inflation protection. When data showed it was a 31-year high for the first time in early November, the leading crypto asset.
However, the market has looked shaky in the past few weeks. Fears of the Omicron variant have sent fear across global markets, with crypto struggling to hit new highs since the discovery of the new strain of COVID. Many crypto assets have been trading sideways for weeks.
Investors note that the outcome of the Fed meeting is bullish on crypto, but it’s not just digital assets that have risen. That has also risen by over 200 points during the index also increased by 2%.
Source: Crypto News Deutsch