The Federal Reserve’s attempt to cool down the markets by suggesting that the first rate cuts might not happen in March doesn’t seem to have had the desired effect. Surprisingly, stock markets opened in the green, and certain alternative coins, including Oracles $LINK and $PYTH, are taking the lead.
It appears that the market isn’t easily fooled. Before the Federal Reserve’s January FOMC meeting, the crypto market was on a downward trend, maintaining a bearish bias during and after the meeting. However, now that there’s been time to digest Powell’s statement that interest rates may not be cut in March, a healthy dose of skepticism seems to have kicked in.
The Federal Reserve has historically used its influence to “talk down” the markets when it deems them too exuberant. Powell’s recent speech, although termed “dovish” by most, aimed to dispel the notion that interest rates would need an imminent cut. Powell likely considered that signaling a rate cut would mark the beginning of the ‘Fed pivot,’ injecting more liquidity into the markets.
Despite this, Thursday has seen the market opening in positive territory. This suggests that the market might not be entirely swayed by Powell’s remarks, and given the forward-looking nature of the market, there’s an anticipation of increased liquidity sooner rather than later.
While the crypto market is still in an early stage of becoming less bearish, there are noticeable changes. $BTC has defied expectations by not falling through its bullish trend line, consolidating securely above it, at least for now.
$LINK, maintaining its bullish momentum, has stood out among the first altcoins to turn green. Even when others were struggling, $LINK is up approximately 10%, breaking out of its previous trend.
$PYTH, a newer player in the crypto scene, operates on the Solana blockchain and serves more blockchains than its Ethereum competitor, $LINK. Despite its relative novelty, $PYTH has kept above its upward trend line and is approaching the resistance at $0.446. If it surpasses this barrier, there’s potential for a new all-time high at $0.558, signaling a bullish future for this oracle. We should mention also that Binance announced that they will list PYTH on its platform starting from the 02 February 2024.
