The largest cryptocurrency continues to rebound from a five-week low.Read MoreFeedzy
As of press time, the largest cryptocurrency was changing hands at $41,373, still well off the high around $48,000 a few weeks ago.
“The macro landscape is looking positive in my opinion,” wrote Marcus Sotiriou, analyst at the U.K.-based digital asset broker GlobalBlock in a newsletter. “I am not concerned whether there is a 50-basis point rate hike or not. What matters is how strong the consumer is. The University of Michigan consumer sentiment index is flat, showing that we do not have unanchored inflation expectations, meaning that people do not think inflation is going to run away. This was not the case in the 1970s, which led to a recession.”
Sotiriou said he thinks the economy will have a soft landing despite many analysts forecasting a recession. He is bullish on bitcoin and equities even though there might be a 50 basis point rate hike.
Ether (ETH) rose 6.8% in the past 24 hours, trading just above $3,000. U.S. stocks were higher on Tuesday. The S&P 500 is up 1.3% today and the Nasdaq is up 1.7%.
“It appears that there’s strong selling pressure in the $BTC perpetual swaps market,” IntoTheBlock Insight said in a Telegram message. There is a negative funding rate across all major exchanges and a rising open interest, which means that shorts are being opened.
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
