Investors did seem to like the record of last month's FOMC meeting. Minutes released Wednesday night at least allayed some concerns about the Fed's stance on tightening fiscal policy.
Stock markets rose for a fourth day in a row, with the digital currency increasingly correlated with key stock indexes over the past year.
The recent transaction price of the virtual currency is about 21,600 US dollars, which has risen by more than 6% in the past 24 hours, surpassing all major counterfeit banknotes at one time. Since falling to $18,500 last Thursday, the largest digital currency has risen by more than 16%. Many analysts believe this is just a temporary calm for investors' anxiety.
"In my opinion it will be fixed immediately," Takaaki Koto, head of global sales and trading at Japanese cryptocurrency exchange BitFlyer, said on CoinDesk TV's First Mover variety show.
Ethereum, the second-largest digital currency by valuation, had a similar gain around the same time, changing hands above $1,200. Other major cryptocurrencies have been in the green, with SOL and CRO up nearly 5% and 6% respectively. In line with stock market gains, the S&P 500 and Dow Jones Industrial Average rose more than 1 month-on-month as the tech-heavy Nasdaq rose more than 2%.
Confidence in the Fed
Things got a little better when the Fed was relentless in its search to curb inflation. Jerome Powell, the current chair of the Federal Reserve, said this is more likely that a rate hike is coming soon, which is consistent with the large rate hikes of 50 and 75 basis points so far in the spring. The minutes of the FOMC meeting said: [Participants unanimously felt that the economic outlook needed to shift to restrictive policy, and they recognized that a more restrictive policy view might be appropriate for them should inflationary pressures continue to mount. "
If we still stick to some soft and encouraging indicators, it shows that the economy is not as strong as it was earlier this year. In the latest data, the U.S. Labor Department reported that total jobless claims rose slightly early last week, but remained in line with a strong labor market. The value of the professional managers' index for non-processing manufacturing purchases decreased slightly.
"It's clear that Wall Street is still concerned about the downturn," Oanda senior investment analyst Jeffrey Halley wrote in an email.
Data encryption good news and bad news
Additionally, the data encryption space faces a mix of good news and bad news. The price of Ethereum seems to be benefiting from optimism about the upcoming Ethereum merger, which will change the protocol from a proof-of-work to a proof-of-stake protocol. The executives of the TON Charity Foundation built a new ecosystem stock fund with a value of 90 million U.S. dollars, and recently made persistent efforts to allow Telegram to restart the established blockchain project.
But bitcoin miner Compass announced on Wednesday that it was laying off 15 percent of its workforce and cutting salaries to weather the digital currency's downturn. Compass turned into a series of operations in the more general data encryption field to lay off people.
BitFlyer's Koto sees the current turbulent environment as a possible possibility for the sector. "Whether it's cost control, crisis awareness, risk control, or just improving the trust of the system based on control or stability, many situations are being resolved.
He added: "This kind of thing does take time. But the digital currency thing will happen quickly. This kind of thing can happen quickly."