Despite the announcements of the Fed and the ECB, the crypto market capitalization is optimistic about the price of BTC and ETH. Jerome Powell announced another interest rate hike of 75 basis points, commenting that cryptocurrencies not issued by banks are bad for storing value.

In November 2021, Bitcoin (BTC), Ether (ETH), and Binance Coin (BNB) led crypto market capitalization to reach USD 3 billion. At the time, the pioneering cryptocurrency almost hit USD 70,000, but the subsequent bearish cycle lasted for months.

The current capitalization of the overall crypto market is moving below the trillion US dollars. Most leading cryptocurrencies have recovered following the previous bearish days that threatened to take them to yearly lows.

According to CoinMarketCap, the crypto market capitalization recently increased by nearly 4.57% to around USD 978 billion.

Meanwhile, the dominance of Bitcoin moves around 37%, and the overall crypto market trading volume over the last 24 hours stands at USD 69 billion.

Despite the announcements of the US Federal Reserve (Fed) and the European Central Bank (ECB), the crypto market capitalization is optimistic. While BTC seems to consolidate around USD 19,000, ETH does it at around USD 1,600.

Since the Merge, the upgrade to Ethereum 2.0, is behind the above optimism, there might be corrections due to the decreasing FOMO.

The Fed Announces the Imminent Regulation of Cryptocurrencies

Jerome Powell, the chairman of the Fed, recently announced another interest rate hike of 75 basis points. In addition, he commented that cryptocurrencies not issued by banks do not serve to store value, among other alleged weaknesses.

The official stated that they want to be in favor of crypto assets but need to create an appropriate regulation.

Powell also said the American central bank would not abandon its efforts to curb inflation. In that regard, he said they needed to continue acting frankly and forcefully.

The European Central Bank also raised its interest rates by 75 points, the highest level in history. It seeks to fight inflation and reduce the expected 8.1% price rise in 2022.

However, regulators have made further announcements about cryptocurrency regulation for several days. Michael Barr, the vice president of the Fed, previously referred to the statements by Jerome Powell.

According to The Washington Post, the US Department of the Treasury stated cryptocurrencies pose a financial risk outweighed by the benefits.

Among several bills already circulating in the US Congress, the House Financial Services Committee recently announced it would run a session on stablecoin markup.

Optimism about the Upcoming Ethereum Merge Might Be Residual

Even though the crypto market capitalization is bullish, the bulls might see residual optimism about the Ethereum upgrade. Therefore, a series of corrections might follow the current moves in the price of cryptocurrencies.

Amid the rise in interest rates, the inevitable rise in the value of the US dollar will drive the crypto market downward.

Investors may wonder whether the crypto market sentiment after the Merge upgrade will determine the price of cryptocurrencies. They must wait for regulations to arrive, but they might not be draconian, and the lobbies might not work well enough in Congress.

By Alexander Salazar

While the price of TAMA might skyrocket soon when it goes public, the over USD 200 million in DeFi projects attract investors toward DEFC. The price stability of USDT makes it an excellent investment option, and the predictions about BTC lead people to continue to buy it.

The so-called crypto winter is a nightmare for investors as the price of Bitcoin (BTC) has dropped below USD 20,000. Ether (ETH) has also suffered losses, and almost all cryptocurrencies are in trouble amid a bearish market.

Since nobody knows when the crypto winter will end, investors can trust they have not lost all. Despite a complicated market situation, interest in some cryptocurrencies has grown lately.

TAMA Might Outperform DOGE and SHIB in the Short Term

Tamadoge (TAMA) is a new meme coin already compared to Dogecoin (DOGE) and Shiba Inu (SHIB and could easily outperform them soon. Its interesting concept has allowed it to rise to more than USD 11 million in a few weeks.

Each stage of its presale has helped the price rise, which has attracted investors to take the plunge. TAMA has been one of the best-selling crypto assets, and it is possible to buy 40 coins for USD 1 USDT.

It has a supply of 2 billion units, but only half will be available during the presale. Since TAMA is a deflationary currency, its price will increase when some coins burn. Some experts believe the price will skyrocket in the short term when it goes public.

The Bullish Price of DeFi Coin Indicates High Growth Potential

In the first quarter of 2022, over USD 200 million remained locked in DeFi projects, attracting the attention of cryptocurrency investors. The price of DeFi Coin (DEFC) has been reflecting bullish influence, showing high growth potential over the last two weeks.

Despite its difficult launch and subsequent delays, DEFC became one of the best cryptocurrencies in which to invest. People can use it for productive farming, staking, and token trading as it is part of the DeFi Swap ecosystem.

The owners of DEFC benefit from its static rewards mechanism every time they buy or sell. Half of the raised fees go to the remaining holders, creating a steady stream of passive income. Amid a growth of over 47% in the DeFi sector, investing in DEFC makes sense thanks to its affordable price.

The Stablecoin Tether Is a Good Option during the Crypto Winter

Tether (USDT), which has been on the market since July 2014, aims to maintain a 1:1 relationship with the US dollar. The stablecoin, created to solve cryptocurrency convertibility and volatility problems, only lost its parity once.

The price of USDT should always remain the same as the official American fiat currency backs it. Its stability, which allowed it to weather the turmoil earlier this year, makes it an excellent investment option during the crypto winter.

In theory, the price of Tether will always be the same because the official currency backs it. That is why USDT managed to weather the turmoil earlier this year without significant losses. Thanks to its stability, it is an excellent investment option to avoid the risks of Bitcoin and Ether during the crypto winter.

Some Investors Still Buy Bitcoin despite the Bearish Market

Despite its price drop and volatility in the first half of 2022, some investors like the excitement brought by Bitcoin (BTC). The pioneering cryptocurrency is worth around USD 19,705.78 and has accumulated a 0.44% loss over the last 24 hours.

Some experts believe that the price of Bitcoin might eventually reach USD 100,000 and exceed USD 110,000 within five years. That has led many investors to continue buying it amid the bearish market, although it is not yet out of danger.

By Alexander Salazar

Crypto market capitalization rises, but some regulatory announcements sound.

In November 2021 the crypto market capitalization led by Bitcoin, Ethereum, and BNB reached $3 Billion. The leading coin, Bitcoin, almost hit $70k. However, the bearish cycle subsequently began and lasted for months. A stage which we can classify as the crypto winter and still live.

Today the market capitalization of cryptocurrencies moves below the Trillion Dollars. In the last few hours, most of the top 100 cryptocurrencies have seen a recovery. After the previous bear days, that threatened to take many of the big cryptos to yearly lows.

The market capitalization, in fact, increased to levels close to 4.57% since the previous day, according to CoinMarketCap. Currently, the overall cryptocurrency market capitalization is around $978 billion.

All this while the dominance of Bitcoin moves between 37%. The total trading volume in the cryptocurrency market in the last 24 hours stands at $69 billion (approximately 19% less than the previous day).

Despite the speech and announcements of the FED and the ECB, the crypto market capitalization is optimistic: its great protagonists, Bitcoin and Ethereum, are in profit compared to yesterday. BTC looks to consolidate around $19,000. While Ethereum seems consolidated at $1,600.

Behind today’s optimism is The Merge, the upgrade to Ethereum 2.0. Therefore, it is likely that there will be corrections as the FOMO created around this event decreases.

Fed Beats the Drums of Regulation

Federal Reserve Chairman Jerome Powell announced Thursday another interest rate hike of 75 basis points. He has also referred to cryptocurrencies with words such as:

“Digital currencies that are not issued by banks seem to not have much to offer. They’re not very good at storing value.”

“We want to be in favor but also create an appropriate regulation.”

Powell also said that the US central bank is not going to back down on efforts to curb inflation:

 “We need to act now, frankly, forcefully, as we have been doing.”

For its part, the European Central Bank also raised its interest rates by 75 points, the highest level in its history. The intention of this decision is likewise to curb inflation and mitigate the expected price rise of 8.1% in 2022.

However, the drums of cryptocurrency regulation have been beating loudly for several days. Fed Vice President Michael Barr had previously referred to Jerome Powell’s announcements.

In fact, this morning The Washington Post published a report in which it reports that the United States Department of the Treasury will publish a statement that cryptocurrencies represent a financial risk that they outweigh the benefits. This is a call for Congress to act on it.

It is worth noting that there are already several bills circulating in the United States Congress. The House Financial Services Committee announced in early September that it will run a session on markup in stablecoins.

Optimism May Just Be Residual

The crypto market capitalization is bullish. However, bulls should keep in mind that some residual optimism is likely to be seen on this day from the Ethereum upgrade. Therefore, the current moves are likely to be followed by corrections.

Faced with the rise in interest rates, the increase in the value of the dollar is inevitable, which drives the cryptocurrency market lower.

Crypto investors must wonder about the market sentiment after “The Merge” update. What will then be the factor that drives optimism?

Stakeholders also have to be on the lookout for regulations that arise. Although it is doubtful that these are draconian and that the “lobbies” do the job well enough in the halls of Congress.

Will the crypto market cap drop after that? At the moment the only thing to do is wait.

By Audy Castaneda