Crypto markets soar after Fed pledges to print money, Evergrande plans to pay down debt

The cryptocurrency ecosystem showed signs of recovery on Sept. 22 after Bitcoin and altcoins sold off to swing lows during a 48-hour correction. Stock and cryptocurrency investors are clearly concerned about the possible bankruptcy of Chinese real estate company Evergrande, with many fearing a possible default could trigger a sell-off in global financial markets.

Those fears were temporarily put to rest after Evergrande reached an agreement with bondholders and technically avoided a default, helping spark a recovery across the cryptocurrency market that pushed bitcoin to a daily high of $44,000 .

Since reaching a low of $39,572 on the evening of September 21, the price of Bitcoin has rebounded 11.3 percent to an intraday high of $44,021, according to data from Cointelegraph Markets Pro and TradingView. As of this writing, the asset is trading near $43,400 Dollar.

BTC/USDT 4-hour chart Source: TradingView

Bitcoin prices surged midday following comments from Federal Reserve Chairman Jerome Powell that the central bank plans to maintain current levels of monthly bond purchases for the foreseeable future. Powell also said a rate hike could come as soon as 2022.

Crypto Markets Withstand Regulatory Headwinds

In addition to the Evergrande-related developments, recent comments from U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler have also weighed heavily on the market, as the regulator re-emphasized directing the SEC to crack down on cryptocurrencies and growing stablecoins. currency market plan.

The bearish market moves that followed these comments all dissipated on Wednesday as a market-wide recovery began to take shape following the Fed comments, which lasted into the afternoon and saw Bitcoin rally back to support at $44,000 and Ethereum rally to $3,000 It also led to the recovery of the market.

Evidence of the broader market impact of the Evergrande incident and regulatory concerns is reflected in the Crypto Fear & Greed index. The index is again showing extreme fear after being in neutral the previous week and in extreme greed territory in August.

Fear and Greed Index Source: Alternative

The altcoin market has seen a recovery

The upturn in the market on Sept. 22 helped push up the prices of most tokens in the top 200 cryptocurrencies, with the exception of stablecoins, which fell as traders looked to get out of the sidelines and build new positions.

Daily cryptocurrency market performance Source: Coin360

At the time of writing, Ethereum-based decentralized finance protocol Enzyme (MLN) was the biggest gainer, trading at $160.30 after a 32% jump in the past 24 hours. COTI is also up 21%, trading at $0.385.

Other notable performers include Arweave (AR) and Perpetual Protocol (PERP), which are up 22% and 21%, respectively.

The current total market capitalization of cryptocurrencies is $1.947 trillion, with Bitcoin dominance at 42.1%.

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