Crypto Markets Soar After Fed Pledges To Print And Evergrande Plans To Pay Off Debt

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The cryptocurrency ecosystem shows signs of recovery on September 22 after a 48-hour patch that saw Bitcoin and altcoins sell to their lows. Investors in stocks and crypto were clearly worried about the possible bankruptcy of Chinese real estate company Evergrande, and many feared that the possible failure could trigger a global decline in financial markets.

These concerns were temporarily assuaged after the real estate company was able to come to an agreement with bondholders and technically avoid defaulting on its bonds, which helped spark a rally in the cryptocurrency market that has raised Bitcoin (BTC) to a daily high. at $ 44,000.

Data from TBEN Markets Pro and TradingView show that since hitting a low of $ 39,572 on the evening of September 21, the price of Bitcoin has rebounded 11.3% to an intraday high of $ 44,021 and the asset is trading at nearly $ 43,400 at the time of writing.

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4 hour BTC / USDT chart. Source: TradingView

The midday spike in the price of Bitcoin (BTC) came following comments from United States Federal Reserve Chairman Jerome Powell, who explained that the central bank plans to maintain its current level of monthly purchases of ‘obligations for the foreseeable future. Powell also signaled that an interest rate hike could occur as early as 2022.

The crypto market pushes back regulatory headwinds

In addition to the developments related to Evergrande, recent comments from the chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler, also weighed heavily on the markets, as the regulator reaffirmed its intention to order the SEC crack down on cryptocurrencies and the growing stablecoin. Marlet.

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The bearish market conditions that followed those comments all but dissipated on Wednesday as a market-wide recovery began to take shape after the Fed’s comments continued into the afternoon, and began to take shape. led by the rally of Bitcoin to $ 44,000 and the rally of Ether (ETH) to $ 3,000.

Evidence of the wider impact Evergrande and regulatory concerns have had on the market is reflected in the Crypto Fear & Greed Index, which is again registering extreme fear after being neutral the previous week and in the D Zone. extreme greed in August. .

Index of fear and greed. Source: Alternative

Related: Altcoins See 35% Bounce After Bitcoin Recovers $ 43,000

Green shoots populate the altcoin market

The market reversal on September 22 helped push up the price of most of the top 200 cryptocurrencies except stablecoins, which were in the red as traders look to pull out and open new positions. .

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Daily performance of the cryptocurrency market. Source: Coin360

Enzyme (MLN), an Ethereum-based decentralized financial protocol, is the main winner at the time of writing, trading at a price of $ 160.30 after rising 32% in the past 24 hours. COTI has also gained 21% and is trading at $ 0.385.

Other notable performances include a 22% increase for Arweave (AR) and a 21% increase in the price of Perpetual Protocol (PERP).

The overall cryptocurrency market capitalization now stands at $ 1.947 billion and Bitcoin’s dominance rate is 42.1%.

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