Crypto Ethereum, ETH down 3% after Fed keeps rates steady

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Crypto Ethereum, ETH down 3% after Fed keeps rates steady

U.S. Central Bank Telegraphs One More interest rate hike in 2023.

The Federal Reserve has forecast another rate hike could come this year despite the reserve's decision to keep interest rates steady on Wednesday.

The central bank's projections show a fall in median rates of 5.6 percent before the end of the year, up from the current range of 5.25% to 5.5%. The recommended hike received support from 12 Federal Reserve officials and 9.9 opposition from the Federal Reserve.

The combined capitalization of Crypto assets has now been wiped from $1.05T after the 3% retraction, coinmarketcap said in a statement. The value of BTC has dropped 2.5%, and ETH is down 3% after both of the assets regained 1% in the past 24 hours.

September's closure will also coincide with the expiry of $3B worth of quarterly BTC options and $1.8B in contracts tracking Ether.

The Defiant said that quarterly contracts are typically the most significant in terms of volume and value, estimating institutions represent 85% of activity.

Strijers, however, said he does not expect to see'strong market moves in the coming week' based on the current positioning of market participants.

This September has been the weakest month for Ethereum's on-chain activity this year.

More than 13,000 ETH has been added to Ether's supply since the month began, meaning Ethereum's burn mechanism failed to offset new ETH entering supply as rewards for validators.

The long-term downturn in the NFT market and the buzz surrounding memecoins have led to low activity.

The retracement in On-Chief also occurs with Layer 2 transaction throughput setting new heights multiple times in recent weeks. On Sept. 14, ETH's L2 ecosystem processed an average of 64.2 transactions per second, compared to 12.4 TPS on the Ethereum mainnet.