Ethereum is down more than 6% in light of pressure on cryptocurrencies
The majority of digital currencies declined during trading today, Thursday, amid pressure on Bitcoin and its siblings, as well as evaluating the recent moves by central banks and the subsequent statements.
In remarks this week, Federal Reserve Chairman Jerome Powell confirmed that the jobs report was stronger than expected for January.
He reported that the message from the Monetary Policy Committee at last week’s meeting is that the slowdown in inflation has already begun, but there is still a long way to go.
In this regard, the head of the Federal Reserve believes that the US central bank may be forced to make more decisions to raise interest rates
The Federal Reserve announced in a decision on Wednesday that it will raise the interest rate by 25 basis points to 4.75% from 4.50%.
The Fed’s slowdown in the rate hike came in light of the emergence of signs of slowing inflationary pressures in the US economy
Last week, the European Central Bank and the Bank of England announced a decision to raise interest rates by 50 basis points each in order to control inflation.
Commenting on the decision, the President of the European Central Bank, Christine Lagarde, said that the economy in the eurozone witnessed a severe slowdown over the past year.
In terms of trading, the price of the ethereum digital currency fell by 21:36 GMT on the CoinMarketCap platform, by 6.3%, to $ 1547.7.
Will the pressure on digital currencies continue?
Central banks’ decisions to raise interest mean withdrawing more liquidity from global markets to mitigate inflation, and then this puts pressure on asset values.