Tuesday, 02 January 2024 12:17 GMT

Crypto Markets Defy Volatility With Cautious Strength After Fed Rate Cut


(MENAFN- The Rio Times) Crypto assets steadied following the U.S. Federal Reserve's rate cut, with Bitcoin setting the tone by holding near $117,130.

Over the last 24 hours, Ethereum and Solana outperformed, rising to $4,574 and $244.11, while major altcoins like AVAX and MYX recorded double-digit gains. These numbers show real buyers are still active, but enthusiasm remains cautious.

ETF activity told the real story behind the price action. Bitcoin ETFs saw a net outflow of $51 million, which means some institutional investors decided to scale back exposure.

BlackRock 's IBIT, on the other hand, attracted $149.7 million, showing not everyone shared the same view. The split between the biggest ETF products pointed to uncertainty about what comes next.

Ethereum ETFs gained new investment, as asset managers looked ahead to network upgrades and enduring interest in DeFi and NFTs.



Technical analysis confirms the measured mood. The four-hour chart showed Bitcoin grinding higher above support near $116,200. The price approached the upper edge of its Bollinger Bands but stayed within normal volatility.

The relative strength index (RSI) hovered around 59, signaling good momentum without the market getting carried away. MACD signals a slow but steady trend up, and trend lines held firm across several sessions.

On the daily chart, the bigger technical story became clear. Price continued to ride above the 200-day moving average, signaling longer-term confidence.

RSI strengthened to 61, while the MACD and Ichimoku Cloud readings both aligned with cautious optimism. Importantly, the Global Liquidity Index didn't surge or fall, showing no big new flow of money into or out of the system.

That fits with what is visible on the exchange-no frantic new retail buying, but still steady business from institutional players and professional traders. Macro events were the backdrop. The Fed's cut didn't surprise, but it forced big holders to rethink.

Many large market participants sold into strength, cementing short-term gains without running for the exits. This was not a panic, but a calculated adjustment in portfolios.

The last day's trading in Bitcoin and top altcoins summed up the post-rate cut mood worldwide: the core market remains steady, professional traders stay active, and institutions move funds carefully.

Volatility has not vanished, but new trends must wait for a stronger push in either direction. For now, the crypto story is one of calm, mature market action rather than wild swings or exuberant headlines.

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