As the U.S. Federal Reserve meets on Wednesday to decide on the interest rate, a new narrative is emerging in the crypto world – the resilient Korean crypto market. While the U.S. awaits the decision of a third consecutive interest rate hike, crypto traders are turning their attention to Korea, where there is a diversified interest in altcoins, gaming, and even XRP.
US Fed raises interest rate by 25 basis points amid mixed economic signals
The U.S. central bank is expected to raise the interest rate by 25 basis points, bringing it to 525 basis points in 14 months. This move is seen as a sign of the Fed’s hawkishness, as inflation has been steadily declining for the last 6 months.
Despite this, the job market remains strong and there is increased demand for energy commodities, which could lead to further inflationary pressures. It remains to be seen if the Fed will take further action to combat these pressures, or if the current rate hike will be the end of the monetary hawkishness.
Data and mixed performance for altcoins in the crypto market
Surprisingly, data from CryptoQuant shows a weak kimchi premium, despite the rise in interest in altcoins, gaming, and XRP. Bitcoin remains to be the dominant asset, presently accounting for 48% of the market, but growth remains slow and still subject to much speculation.
Interestingly, the correlation between Bitcoin and Copper – also known as ‘Dr. Copper’, for its predictive properties – is increasing, suggesting a growing confidence in the U.S. economy. Ethereum, UNI, and LINK tokens, however, suffered small losses following comments of a 50 basis point rate hike, and US Senators proposed a bill to target laundering and terrorism financing with crypto.
Asian crypto investors are optimistic about the US avoiding a ban on cryptocurrencies
In Asia, the crypto world is hopeful that the U.S. will avoid an all-out crypto ban, as similar regulation adopted by the Korean government has inspired retail-oriented investors to trust their own judgment when investing in crypto.
According to Matrixport‘s head of research, Markus Thielen, Mass Vehicle Ledger, Serum, and XRP have been particularly popular in Korea. Investors are optimistic that the U.S. will not follow in Korea’s footsteps and implement a crypto ban, as this would likely have a negative impact on the crypto market.
Pressure is rising and markets are increasingly diversifying
However, with the recent banking issues that have arisen, coupled with the potential of another 25 basis point hike, the days ahead remain interesting. Ultimately, investors and crypto traders alike remain curious whether the U. (https://editorialrm.com/) S.
Federal Reserve will retreat to a less hawkish monetary stance, or not. All eyes seem to be on Wednesday’s rate hike and the pressure is certainly building. With the markets increasingly diversifying their interests to include XRP, altcoins, and gaming, it seems like this is only the beginning. Stay tuned.
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