Bitcoin and cryptos are regaining strength after the United States Federal Reserve hiked interest rates by 25 basis points in a case that market watchers are referring to as “sell the rumor, buy the news.” Although the hike was anticipated and mostly priced in, bulls reinforced their grip on the largest crypto, now trading slightly above $29,000.<\/p>\n
Ethereum gained 2% in 24 hours to trade at $1,903 on Thursday with Solana (SOL) and TRON (TRX) coming up stronger with %4.8 and 6.8% in intraday gains. Investors would be digressing toward altcoins like Render Token (RNDR), Woo Network (WOO), Curve Dao Token (CRV), and Rocket Pool (RPL), which have all been performing remarkably well over the last few weeks.<\/p>\n
According to Santiment, a leading on-chain data analytics platform, traders in anticipation of the Fed decision on interest rates may have sold the rumor while buying the news.<\/p>\n
However, a few hours after the regulator’s announcement, prices have been gaining momentum. Such decisions by investors are driven by similar events in the past that have led to negative outcomes.<\/p>\n
Still, after the actual event or news occurs the market tends to recover as the hostile event turns out to be less severe compared to market expectations.<\/p>\n
\n🤑 Was this latest #Fed<\/a> rate hike all just one massive \"sell the rumor, buy the news\" phenomenon for #crypto<\/a> traders? We can often overreact to a repeated news event when previous ones have correlated with drops. Read our insight on our optimistic outlook. https:\/\/t.co\/P32mYwUpx3<\/a> pic.twitter.com\/2Lb5zFzfqC<\/a><\/p>\n
— Santiment (@santimentfeed) May 4, 2023<\/a><\/p><\/blockquote>\n