Cryptocurrencies Move Higher as Traders Rush to Buy the Dip

24 Nov 2021 · 3rd Party Analysis

Cryptocurrencies Move Higher as Traders Rush to Buy the Dip

WRITTEN BY ThorFX

In Summary:

  • Cryptocurrencies advance Tuesday and early Wednesday as traders rush to buy the dip
  • Bitcoin gains about 5% on Tuesday and tops $58,000 while Ether rallies 8% to $4,400

What’s Trading in the Markets?

Major cryptocurrencies are off their weekly lows early on Wednesday as traders are trying to stage a comeback rally. That said, there is still some weakness in the upside swing as bitcoin and ether wobble on their way up.

In detail, the price of bitcoin, the leading cryptocurrency, rebounded from yesterday’s low of $55,300 to a session high of nearly $58,000 earlier in today’s session. In other words, bitcoin’s price gained about 5% on the day.

Ether, the second-largest token in crypto, is going through a volatile start of the week. Specifically, the token lost about 6.5% on Monday to reach a session low of $4,020. The next day, however, the Ethereum coin pared back all losses from a day earlier. It even gained for the week as it jumped 8% to reach a session high of almost $4,400.

On Wednesday, the orange coin is trading near $57,000 due to the lack of strong buying momentum. Ether, on the other hand, keeps his upward-looking sentiment as the token hovers near weekly highs. Presently, Ether’s price gyrates around $4,300 per coin.

Dive Deeper in the Financial World

Meanwhile, stocks and currency pairs are facing some jitters this week. Increasing concerns are mounting over the market after President Joe Biden nominated Jerome Powell for a second term as Fed chairman.

Investors now shift their focus to the continuation of Jerome Powell’s policy changes. Previously, he vowed to use all Fed tools to cool down rising prices. To do that, Mr. Powell is expected to accelerate the pace of asset purchases.

That means he could choose to increase the monthly reduction of $15 billion and unwind the support faster. Until September, the US central bank injected as much as $120 billion a month in the US economy since the pandemic arrived. Now, that stimulus will be removed by mid-2022.

What to Expect in the Markets?

To this end, traders on Wednesday are following today’s news on monetary policy. At 02:00 pm, the Federal Reserve releases its minutes from the last meeting on Nov. 2-3. Back then, Fed officials decided to start dialling down easy-money policies starting this month.

The summary of the meeting will be a catalyst for some sharp swings in the currency market. Additionally, it could also provide some momentum in stocks, depending on what’s written in the document. Regardless, market participants will be looking for opportunities to enter into the forex space or the stock exchange.

Economic News Today (EST time)

On Wednesday, the US will report its GDP data for the third quarter at 08:30 am. Also, initial jobless claims for the previous week arrive at the same time. Next is the big event of the day, the Fed’s meeting minutes, slated for 02:00 pm.

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