The impact of federal interest rates remaining high was felt by the Crypto markets after Bitcoin consolidated its position at $27,300 on Tuesday. The correction came after an explosive growth of trend when Bitcoin was valued at $30,000. The current consolidation has happened after a two-day slide by Bitcoin. The market value of Ethereum consolidated at around $1800.
Analysts are saying that this was an expected price consolidation taking into consideration the macroeconomic factors.
They pointed out that the biggest trading markets Dow Jones and Nasdaq have remained flat for all through Monday afternoon trading sessions.
According to analysts, the investors are looking at Federal Open Market Committee (FOMC) meeting. The speculation is that Federal Interest rates might increase by 25 points. This has explained the lukewarm response of the market in the current scenario.
Both Bitcoin and Ethereum lost 7% and 11% of their value respectively.
However, Crypto data firm Kaiko noted that BTC continued to outperform gold in terms of returns and investor sentiment.
Kaiko said a rising ratio was a bullish signal as BTC was clearly outperforming gold. Gold is considered to be a safe haven for investors.
The ratio had fallen considerably after the collapse of the FTX Crypto exchange platform in November. The Crypto markets have been in recovery mode from that collapse recently. Analysts believe that the current value correction is a signal for a bull run to begin soon.
