- The crypto market may be in a relief rally, as most cryptocurrencies are in the green.
- The total market capitalization of cryptocurrencies is almost $1 trillion.
- Recently, the UK has been taking steps to mimic the US Federal Reserve’s raising of interest rates.
The crypto market appears to be in a relief rally, as most cryptocurrencies are seeing positive movements in the last 24 hours. For example, Bitcoin (BTC) has once again broken through the $20,000 resistance level, while Ethereum (ETH) is firmly trading within the $1,300 range.
Overall, the crypto market is only $5 billion shy from hitting $1 trillion once again.
People have been divided as to what is causing the crypto market to see signs of recovery. In the last 24 hours, Tesla CEO Elon Musk reaffirmed his interest in buying Twitter. However, another event worth considering is the UK’s steps to raise its interest rates.
Specifically, in a report by Bloomberg, UK’s Prime Minister Liz Truss confirmed her support to the Bank of England’s jurisdiction to set the interest rates independently for the British pound (GBP).
The move is akin to what the US has been doing with the US dollar. Given the prevailing market sentiments, most people are converting their assets into US dollars in a bid to hedge their wealth from turbulent financial storms ahead.
This has caused various financial markets — including foreign assets such as the Pound and Euro — to tumble. Of course, stocks and crypto were not exempted. Hence, the UK’s plan aims to change the course of the money flow.
Truss said:
“It’s right that interest rates are independently set by the Bank of England and that politicians do not decide on this. The Chancellor and the Governor will keep closely co-ordinating our monetary and fiscal policy, and the Chancellor and I are in complete lockstep on this.”
The UK is only one of the countries that are planning to raise interest rates as a means to combat the massive inflation going on. Many believe this is due to the ongoing Russia-Ukraine war.
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