On Wednesday a FOMC meeting (Federal Open Market Committee) took place. The S&P 500 and crypto markets reacted positively to news that the Fed will hike interest rates for the first time since 2018, by 25 basis points.
The US dollar and Gold (risk off assets) moved lower in valuation, whereas stocks and Bitcoin (risk on assets) moved up, and altcoins, seen as even more risk on, pumped the hardest.
Bitcoin is up 0.5% in the past 24 hours, currently at $40,700, towards the top of a sideways range it’s been in for two months. If it manages to break out to the upside it could result in 2022 altcoin season once money trickles down to lower marketcap coins.
Ethereum gained 3%, currently at $2770 – when ETH leads BTC that can also act as an indicator of the next altcoin season or ‘alt season’ as many altcoin protocols depend on the strength of Ethereum as a Layer 1 coin.
Altcoin Season 2022
Some of the largest gainers are low cap coins like CELO and LBLOCK, gaining around 15-20% on the day.
Despite a delay in their NFT launch the native token of the Lucky Block project has bounced over 100% since briefly retesting the $0.002 level.
Other top gainers include some of the best DeFi coins and coins related to NFTs.
Altcoin season 2022 incoming?
All of the above coins are listed on FCA regulated crypto platform eToro.
To confirm a bullish market structure and potentially the next crypto bull run Bitcoin next needs to break the $45k resistance level.
#Altcoinseason was trending on twitter last month, yet didn’t materialise. The bullish news out of FOMC yesterday however might be a catalyst for an alt season heading in the second quarter of the year, and if Ethereum can close a HTF candle back above $3000.
Next FOMC Meeting
Eight scheduled FOMC meeting take place each year. One took place in January.
The next will be in May, June, July, September, November and December – visit Federalreserve.gov for the annual FOMC calendar schedule.
Financial policies, monetary goals, economic projections are discussed and various announcements made which influence the financial markets.
Price action (PA) is very volatile around FOMC meetings as some day traders attempt to ‘buy the rumor, sell the news‘ – we recommend layering your bids if you buy cryptocurrency assets around any FOMC time period to get a better average entry.
Cryptocurrency markets are highly volatile and your investments are at risk.
Source: https://insidebitcoins.com/news/altcoin-season-fomc-meeting