"Fed Chair Powell's comments on another cut coming in December is "far from assured" have spooked all markets. Leading crypto BTC is down over 2% on the day and showing weakness in the order books. Many expected the announcements made by the Federal Reserve Open Market Committee today, leading the event to be a classic "sell the news" scenario. Bitcoin continues to lag equities indices, but many are hoping to see bitcoin repeat its 2020 Q4 playbook with the massive run-up seen in gold."
"Ethereum's struggles to maintain upward momentum face even greater pressure, as the Digital Asset Treasury company narrative has run into some strong headwinds. ETHZilla (Nasdaq; ETHZ) , one of the larger of the DAT's, announced a share buyback program yesterday as its shares are trading below NAV, hoping to bolster the equity price. The company has up to $250m in buyback authorization, but this scenario can often turn into a death spiral,"
The Federal Reserve announced an expected 25 basis-point rate cut and an end to Quantitative Tightening on December 1, yet markets sold off. Fed Chair Powell warned that a further December cut is "far from assured," which alarmed investors and amplified the downturn. Bitcoin fell over 2%, showing order-book weakness and lagging equities, prompting a "sell the news" reaction. Ethereum fell below $4,000 and tested $3,800, while Digital Asset Treasury products traded under NAV. ETHZilla authorized up to $250 million in buybacks as shares trade below NAV, raising concerns that buybacks could exacerbate declines similar to past GBTC/ETHE dynamics.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]