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On Thursday morning, the crypto markets were volatile, with some cryptocurrencies surging higher while others dropped. In contrast to recent tendencies, crypto values are not currently amplifying the market’s move higher or lower. That being said, the Stellar (XLM) coin has dropped, losing 7% before gaining support near the $0.109 level.
Investors are witnessing a massive outflow from the cryptocurrency market, which is currently taking place. Inflation and other macroeconomic variables may be the most damaging to cryptocurrencies in the coming months.
While the United States Fed’s hawkish policy and interest rate hikes are putting additional downward pressure on Steller.
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Steller (XLM) – Things You Need to Know
Steller (XLM) was launched in 2014, and soon, it gained popularity as one of the popular cryptocurrencies. It is also used in a variety of financial transactions. It has begun to collaborate with Moneygram and Flutterwave, as well as major institutions like the New York State Finance Department and IBM.
However, the price increases in Stellar were primarily due to its security and speed. Steller charges small gas fees for transactions, one of the key factors influencing Steller prices. It has become a popular low-cost crypto transaction medium among cryptocurrency traders.
In contrast, the crypto market sell-off has had a negative impact on Steller prices. The broad-based US dollar bullish bias was another key factor limiting any further gains in Steller prices.
Hawkish FOMC & Fed Fund Rate
The rate increase by the Federal Reserve of 75 basis points was in line with market forecasts. Despite leaving the door wide open for a fourth successive 75bp rise in November, the Fed reiterated that activity has to slow considerably more due to inflation being far stickier than expected.
Chair Powell answers reporters' questions at the FOMC press conference on September 21, 2022. https://t.co/siWde1Rh9D pic.twitter.com/EVJM6TW8Ce
— Federal Reserve (@federalreserve) September 21, 2022
Fed anticipates a policy turnaround later in 2023 as the likelihood of averting a recession increases. The Federal Reserve increased the Fed funds target range by a unanimous vote to 75 basis points and aggressively raised its rate hike projections.
As a result, we have seen a bearish trend in Steller’s price.
Steller (XLM) Price & Tokenomics
Stellar’s current price is $0.1121, with a 24-hour trading volume of $247 million. Stellar has fallen by 3.25% in the previous 24 hours. CoinMarketCap now ranks #26, with a live market cap of $2.8 billion. There are 25,398,535,052 XLM coins in circulation, with a maximum supply of 50,001,806,812 XLM coins.
A Stronger US Dollar Weigh on XLM
The broad-based US dollar rose to a two-decade high on Wednesday, as remarks from Russia’s President Vladimir Putin shook markets ahead of the US Federal Reserve’s likely next aggressive rate hike. Putin ordered Russia’s first mobilization since WWII, warning the West that if it continued its “nuclear blackmail,” Moscow would respond with the full force of its vast arsenal.
The dollar index, which measures the value of the US currency relative to other major currencies, increased by more than 0.5% to 110.87, its highest level since 2002. The strong US dollar was cited as a major factor impeding further gains in Steller coin values.
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