Cryptos Firm Amidst FOMC Minutes, Economic Data

A relief rally that followed the release of the FOMC minutes vanished, but market capitalization of the cryptocurrency markets remains firm around the flatline amidst a slew of economic data releases. Strong earnings updates from the corporate sector also helped sentiment.

The FOMC minutes released on Wednesday revealed a Fed that remained committed to fight inflation. Though the FOMC actually hiked rates only by 25 basis points, a few participants favored a 50-basis point increase, arguing that a larger increase would more quickly bring the target range close to a sufficiently restrictive stance. Participants also agreed on continuing the process of reducing the Federal Reserve’s securities holdings.

The members noted that recent indicators pointed to modest growth in spending and production. However, robust job gains and the low unemployment rate were matters of concern, contributing to continuing upward pressures on wages and prices. Members noted that inflation had eased somewhat but remained elevated. Participants therefore expected that a period of below-trend growth in real GDP would be needed to bring aggregate demand into better balance with aggregate supply and thereby reduce inflationary pressures.

Data released just a while ago showed initial jobless claims for the week ended February 18 at 192 thousand, versus expectations of 200 thousand and previous week’s revised reading of 195 thousand.

Second estimate of the GDP growth rate for the fourth quarter came in at 2.7 percent versus 2.9 percent in the advance estimate and previous quarter’s reading of 3.2 percent.

Overall crypto market capitalization is currently at $1.10 trillion, up 0.67 percent on an overnight basis, whilst markets assess the impact of the recent economic data on the headroom available to the Fed to raise rates higher and longer.

Bitcoin has declined 0.36 percent to trade at $24,039.71.

Ethereum has rallied 0.57 percent to trade at $1,656.58.

Among the top 100 cryptocurrencies, 75th ranked Optimism (OP) is the best performer with an overnight rally of 14 percent. 83rd ranked Enjin Coin (ENJ) gained 13 percent followed by 29th ranked Lido DAO (LDO) that added more than 10 percent.

57th ranked Neo (NEO) is the greatest laggard with an overnight decline of 5.3 percent. 25th ranked Filecoin (FIL) and 89th ranked 1inchNetwork (1INCH) also dropped more than 4 percent.

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