Bitcoin (BTC) is rising despite Hawkish Fed, Voyager crisis

Bitcoin, Ethereum and other major currencies rose Wednesday night as the global market value of cryptocurrencies increased by 2% to $ 923.5 billion at the time of the press release.

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See also: Best USDC interest rates

Why it matters: The top cryptocurrency showed signs of consolidating around the $ 21,000 mark on a day when the United States Federal Reserve issued its June political meeting minutes in a hawkish tone.

“Participants agreed that the economic outlook justified the transition to a restrictive policy, and they recognized the possibility that an even more restrictive stance might be appropriate if increased inflationary pressures persisted,” according to the minutes.

Bitcoin and Ethereum’s price action shrugged off the bankruptcy of the lending platform Voyager Digital LLC VYGVF along with fears of contagion in the market on Wednesday in intraday trading.

“Bitcoin consolidates over $ 20,000 at time of writing, while negative sentiment remains among market participants,” said GlobalBlock analyst Marcus Sotiriou.

Sotiriou cited CoinShares data, noting that $ 51 million flowed in ProShares Short Bitcoin Strategy ETF BITI.

“This product is targeting the price of Bitcoin, and shows that institutions are bearish on the asset,” Sotiriou wrote. However, he said that it could also be because it is the first of its kind that allows them to do so.

The dollar continues to rise. The dollar index, a measure of the dollar’s strength against six other currencies, was close to its 20-year high on Wednesday at 106.46, Reuters reported.

Michael van de Poppe said the dollar is still “shooting up” while government interest rates consolidate. The cryptocurrency trader said that Bitcoin “maintains here and looks ready for a major move relatively soon.”

Boring day, the dollar is still shooting upward, while returns are consolidating.#Bitcoin maintains here and looks ready for a major move relatively soon.

Cracking $ 20.2-20.4K is critical, looking at $ 22.4K and $ 23K next.

– Michaël van de Poppe (@CryptoMichNL) July 6, 2022

Van de Poppe said that “cracking” the $ 20,200-20,400 level is crucial for the apex coin to make a move towards $ 22,400 and $ 23,000 next.

Former hedge fund manager and TV host Jim Cramer tweeted that it was “time for crypto” on Wednesday.

time for crypto !!

– Jim Cramer (@jimcramer) July 6, 2022

His tweet came the day after he questioned the “real value” of cryptocurrencies and said they “imploded”.

Cryptocurrency trader Justin Bennett said that the current rise in Bitcoin is a relief rise, adding that $ 21,000 was a resistance area and to “keep an eye on it” for the next few days.

$ 21 100 $ BTC is a resistance area to keep an eye on for the next few days.

Lots of confluence there. If this is just a relief rally, as I think it is, it’s likely to reverse close to $ 21,100 IMO.

– Justin Bennett (@JustinBennettFX) July 6, 2022

Strikers have invested almost 13 million ETH in the Ethereum 2.0 contract – with 62% of the inflows that took place before the coin’s record in November, tweeted Glassnode.

#Ethereum 2.0 stakers have put in over 12.98 million $ ETHwith 62% of what flows in before ATH in November.

However, with $ ETH prices that collapse above 78%, and coins can not be taken out, only 17% of the bet $ ETH is now in profit. pic.twitter.com/hXSpgBRo02

– glassnode (@glassnode) July 6, 2022

The analysis company at the chain said: “Med [ETH] prices that collapse above 78%, and coins that cannot be taken out, are now only 17% of the $ ETH bet in profit. “

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