By now the US markets have closed again. For us, a good time to look at the live Bitcoin price and the prices of the top 25 crypto. These are rising sharply as a result of the Fed announcements. We analyze why. We also analyze why the Tron (TRX) is rising and look at the situation in the NFT market.
We start of course with the live Bitcoin price and the prices of the top 25 crypto.
Live bitcoin price and prices top 25 crypto rise fast
At the time of writing, the live Bitcoin price is quoting EUR 37,681.29 ($39,726.45). This is 5.21% higher than when the US markets closed yesterday and also 2.03% higher than during our Bitcoin update this afternoon.
The live prices of the top 25 crypto are also rising rapidly. Apart from a few stable coins, we only see green numbers. The biggest gain at the moment is for Tron (TRX) with +18.94%. On the site of Tradeincrypto.com you can see all live crypto prices.
Why are Bitcoin and crypto reacting bullishly to Fed decisions?
The rise in crypto prices has everything to do with the interest rate decision and the winding down of the Coronasteun to the U.S. economy. The FED announced as expected that interest rates will rise by half a percent. So as we suspected, this risk was indeed priced in. It was also announced that the phasing out of Coronasteun will start in June. This is slightly later than previously thought and therefore positive.
However, the real booster for the crypto market (and other investments) lay in the further reflections of FED Chairman Powell. He indicated that the FED was not currently considering 75 or 100 percentage point increases, but that future 50 percentage point (0.5%) interventions should not be ruled out. Since the FED indicated during the March announcement that 6 increases are to be expected, there is calm in the market and no need to take into account large interest rate increases at the moment. The market is clearly experiencing this as a relief.
Both Bitcoin and other crypto benefit from the decision.
Why Tron (TRX) is suddenly rising so fast
Among those ‘other crypto’, TRON (TRX) stands out. After resting for a while, we are seeing the coin back in the top 25 more often and it also recently signed for multiple ‘highest listings’ as the most profitable crypto from the top 25. Question is, of course, what caused this.
On the one hand, it is because TRON is launching its own stable coin, the USDD, today. By algorithmic control over the stock of USDD in circulation, the value is fixed at $1 per USDD and this technique of approximation with algorithms is inventive, especially since it makes the USDD a decentralized stable coin.
In addition, the now fully decentralized Tron (TRX) is working on a DAO. This aims to prevent panic reactions in financial crises and make other negative risks more manageable. If this DAO works, it may have a solution for the high vitality (volatility) for crypto prices. This is important for the development of new user cases. The USDD is also going to play a role in the DAO. Investors are apparently eager. Meanwhile, the live Tron (TRX) price is $0.0835 and this is over 18% higher than yesterday, as mentioned.
Difficulties for NFT market
In the NFTt market, unlike regular crypto, there is cause for concern. Shocking figures are causing more and more investors to wonder if the NFT market is not currently the biggest bubble in crypto.
For example, the number of sales per day decreased by a whopping 92%. In September 2021, 225,000 NFTs were sold per day, which dropped to 19,000. The number of NFT wallets also decreased rapidly (by no less than 88%) to 14,000 during this period.
3 causes for NFT crisis
Three crises can be identified for the crisis in the NFT market:
Macroeconomic factors are causing investors to invest less riskily. In fact, the market sees NFTs as riskier than regular crypto;
Investors are also uncertain about the value stability of their crypto investments. The fact that the seller of the NFT of the first Tweet from Twitter chief Jack Dorsey did not receive million-dollar bids, but only the prospect of a frighteningly large loss fuels that uncertainty;
Finally, the market is simply saturated. The NFT hype is attracting more and more artists who are also launching NFTs. With that, there is a choice of at least 5 NFTs at any given time. This automatically depresses the price.
Of course, we will continue to monitor developments in crypto and NFT.
Want to stay up to date with the latest price developments?
You can always follow the developments yourself with our WANT crypto analyses or the background articles and previews on the crypto market and Bitcoin. Of course, you can also follow the live quotes 24 hours a day if you want to stay informed in real time. Are you interested in other investments besides crypto? Then our weekly Monday morning price forecast might be a reading tip. “Please note: We never give financial advice, so our contributions can’t be interpreted that way either. Always do your own research and decide on rational grounds if, when, what and how much you want to invest in.”