{"id":161810,"date":"2023-09-24T10:50:22","date_gmt":"2023-09-24T05:20:22","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=161810"},"modified":"2023-09-24T10:50:22","modified_gmt":"2023-09-24T05:20:22","slug":"digital-asset-markets-shaken-by-hawkish-fed-outlook-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/digital-asset-markets-shaken-by-hawkish-fed-outlook-crypto-news\/","title":{"rendered":"Digital Asset Markets Shaken By Hawkish Fed Outlook – Crypto News"},"content":{"rendered":"

<\/p>\n

U.S. Central Bank Telegraphs One More Interest Rate Hike In 2023<\/p>\n

\n

Digital assets tentatively sold off this week in response to the Federal Reserve indicating another rate hike may come this year, despite deciding to keep interest rates steady on Wednesday.<\/p>\n

Projections<\/a> released by the central bank show median rates of 5.6% before year\u2019s end, up from the current range of 5.25% to 5.5%. The suggested hike garnered support from 12 Federal Reserve officials and opposition from 9.<\/p>\n

Fed Projections (September vs June)<\/figcaption><\/figure>\n

\u201cWe want to see convincing evidence really that we have reached the appropriate level, and we\u2019re seeing progress, and we welcome that,\u201d Fed chair Jerome Powell told<\/a> reporters at a press conference following the decision. \u201cBut, you know, we need to see more progress before we\u2019ll be willing to reach that conclusion.\u201d<\/p>\n

According to CoinMarketCap, $30B<\/a> was wiped from the combined capitalization of crypto assets, which now sits at $1.05T following the 3% retracement. BTC has since dropped 2.5%, and ETH is down 3% after both assets regained 1% in the past 24 hours.<\/p>\n

Quarterly Options Set To Expire<\/h2>\n

September\u2019s close will also coincide with the expiry of $3B worth of quarterly BTC options and $1.8B in contracts tracking Ether.<\/p>\n

Luuk Strijers, the chief commercial officer at crypto options exchange Deribit, told The Defiant that quarterly contracts are typically \u201cthe most significant in terms of volume and value,\u201d estimating institutions represent 85% of activity.<\/p>\n

However, Strijers said he does not expect to see \u201cstrong market moves in the coming week\u201d based on the current positioning of market participants.<\/p>\n

On-chain Activity Drops<\/h2>\n

September has been the weakest month for Ethereum\u2019s on-chain activity this year.<\/p>\n

According to Ultra Sound Money, more than 13,000 ETH ($21M) was added to Ether\u2019s supply since the month began \u2014 meaning Ethereum\u2019s burn mechanism failed to offset new ETH entering supply as rewards for validators amid the slump in activity.<\/p>\n

\"ETH
ETH Supply Change<\/figcaption><\/figure>\n

The low activity has been attributed to the prolonged downturn in the NFT market and the buzz surrounding memecoins dying down.<\/p>\n

However, the retracement in on-chain also coincides with Layer 2 transaction throughput setting new highs<\/a> multiple times in recent weeks. Ethereum\u2019s L2 ecosystem processed an average of 64.2 transactions per second (TPS) on Sept. 14, compared to 12.4 TPS on the Ethereum mainnet.<\/p>\n

\"L2
L2 Activity<\/figcaption><\/figure>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

U.S. Central Bank Telegraphs One More Interest Rate Hike In 2023 Digital assets tentatively sold off this week in response to the Federal Reserve indicating another rate hike may come this year, despite deciding to keep interest rates steady on Wednesday. Projections released by the central bank show median rates of 5.6% before year\u2019s end, […]<\/p>\n","protected":false},"author":2,"featured_media":161811,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-161810","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/161810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=161810"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/161810\/revisions"}],"predecessor-version":[{"id":161817,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/161810\/revisions\/161817"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/161811"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=161810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=161810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=161810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}