Bitcoin’s low volatility after the Fed rate hike: Will it last?

Bitcoin's low volatility after the Fed rate hike: Will it last?

The Blockchain Industry: A Comprehensive Overview

Introduction

Blockchain technology has emerged as a revolutionary force, transforming various sectors across the globe. From finance to healthcare, supply chain to voting systems, the potential of blockchain is vast and promising. In this article, we delve into the latest updates and insights from the blockchain industry, providing a comprehensive overview of the current landscape.

Market Prices and Insights

Bitcoin, the leading cryptocurrency, was trading near $29,300 at the time of writing, experiencing a momentary stall after a recent rally. Ethereum, the second-largest cryptocurrency, has been gaining momentum with the emergence of ZkSync Era, a zero-knowledge scaling solution for the Ethereum network. ZkSync Era is currently leading the layer 2 landscape in daily active addresses, sparking interest in its potential airdrop ¹.

Despite the temporary hiccup in Bitcoin’s price, the overall cryptocurrency market continues to show resilience. Other cryptocurrencies like Gala, Solana, and XRP have seen positive returns ². It is worth noting that cryptocurrencies tend to exhibit volatility, which creates opportunities for investors to capitalize on price swings.

Cryptocurrency volatility can be seen through the lens of options platforms like Deribit, with implied volatility rates at or near all-time lows. Such periods of low volatility historically precede significant spikes, often resulting in upward price movements ³.

Insight into the Mini BTC Rally

As trading began in Asia, Bitcoin showed signs of a mini-rally, albeit stalling near the $29.7K mark. The rally was influenced by the decision of the U.S. central bank to raise the interest rate by 25 basis points. Despite small gains, Bitcoin’s price remains below its recent high, reflecting the range-bound nature of the market between $29,000 and $32,000 since mid-June ⁴.

Ether, the native cryptocurrency of the Ethereum network, has also experienced a slight increase in price, currently trading at around $1,873. Other cryptocurrencies such as OGN and SOL have shown significant growth, indicating the dynamic nature of the crypto market ⁵.

The recent rate hike by the U.S. Federal Reserve has raised concerns among markets, particularly impacting small businesses that struggle to access capital. This move could potentially hinder economic growth and recovery. The implications of such decisions are closely followed by experts in the crypto space, as they can have ripple effects on the broader economy ⁶.

Biggest Gainers and Losers

Within the cryptocurrency market, it is common to see assets experience significant gains and losses. At present, Gala, Solana, and XRP have shown positive returns, making them the biggest gainers. On the other hand, Dogecoin, Stellar, and Chainlink have experienced corrective price movements, establishing them as the biggest losers ⁷.

Insights into ZkSync Era and Potential Airdrop

ZkSync Era, a zero-knowledge scaling solution for Ethereum, has emerged as the leader in daily active addresses within the layer 2 landscape. Its growth trajectory, exceeding 60% over the past month, showcases the rising interest in this scalability solution ⁸.

Currently, zkSync Era boasts more daily active addresses than its competitors, Arbitrum and Optimism, which are considered the largest scaling solutions in terms of total value locked. This demonstrates the market’s anticipation of a potential airdrop from zkSync Era, leading to increased on-chain activity ⁹.

Matter Labs, the company behind zkSync Era, has not officially confirmed any plans for a token airdrop. Nevertheless, the speculation surrounding a potential airdrop has fueled user engagement and the bridging of value, leveraging applications built on zkSync Era ¹⁰.

Important Events

In the blockchain industry, it is essential to keep track of significant events and developments. Two notable upcoming events include the Mining Disrupt 2023 BTC Conference held in Miami, Florida, and the European Central Bank Monetary Policy Decision Statement. These events have the potential to impact market sentiments and stimulate further innovation within the industry ¹¹.

CoinDesk TV: Latest Episode of “First Mover”

For those interested in staying up to date with the latest industry trends, CoinDesk TV provides informative content. In the most recent episode of “First Mover,” various topics were covered, including regulatory perspectives on the crypto industry, market outlooks ahead of a key Fed decision, and insights into mining preparations for the next Bitcoin halving ¹².

Headlines

Lastly, let’s take a glance at some noteworthy headlines from the blockchain industry:

Federal Reserve Hikes Fed Funds Rate by 25 Basis Points: The decision was expected but will be closely analyzed for its potential impact on monetary policy ¹³.
Cosmos Blockchain Project Faces ‘Existential’ Crisis: A network designed for interoperability is navigating challenges after the collapse of Terra and increasing competition from Ethereum-based solutions ¹⁴.
Bitcoin Miners Invest in New Rigs as Prices Approach All-Time Lows: Miners prioritize upgrading their mining equipment in preparation for future halving events ¹⁵.
Declining Daily Volume in DeFi Sector: DeFi experiences a downtrend in daily volume, marking the lowest numbers in seven months ¹⁶.
U.S. Justice Department Pursues Legal Action Against Sam Bankman-Fried: The prosecutor emphasizes the need for stringent measures due to perceived threats posed by the crypto entrepreneur ¹⁷.

Conclusion

The blockchain industry continues to evolve, driven by market dynamics, innovations, and regulatory developments. With each passing day, the technology advances, bringing us closer to a decentralized and transparent future. It is important to stay informed about the latest trends and insights, enabling us to navigate this ever-changing landscape effectively.

CoinDesk, “Good morning. Here’s what’s happening”↩︎
CoinDesk, “Prices”↩︎
CoinDesk, “Good morning. Here’s what’s happening”↩︎
CoinDesk, “Good morning. Here’s what’s happening”↩︎
CoinDesk, “Good morning. Here’s what’s happening”↩︎
CoinDesk, “Good morning. Here’s what’s happening”↩︎
CoinDesk, “Prices”↩︎
CoinDesk, “Good morning. Here’s what’s happening”↩︎
CoinDesk, “Good morning. Here’s what’s happening”↩︎
CoinDesk, “Good morning. Here’s what’s happening”↩︎
CoinDesk, “Good morning. Here’s what’s happening”↩︎
CoinDesk, “Good morning. Here’s what’s happening”↩︎
CoinDesk, “Good morning. Here’s what’s happening”↩︎
CoinDesk, “Good morning. Here’s what’s happening”↩︎
CoinDesk, “Good morning. Here’s what’s happening”↩︎
CoinDesk, “Good morning. Here’s what’s happening”↩︎
CoinDesk, “Good morning. Here’s what’s happening”↩︎

Altcoins,Asia Pacific,Bitcoin,Ether,First Mover Asia

Bitcoin’s low volatility after the Fed rate hike: Will it last?