The week in markets: Crypto earnings, the Fed and bitcoin back above $21,000
Quick Take
- Bitcoin was trading at $21,214 today and ether was at $1,621.
- The Fed signaled the pace of interest-rate hikes may slow, although rates are expected to be higher than previously planned.
- Crypto-related earnings took center stage with Coinbase, Block and MicroStrategy all sharing results.
Crypto prices ticked up over the past seven days as some crypto-related stocks gained after earnings.
Bitcoin was trading at $21,214 today, up about 2% over the past week, while ether gained 0.1% in the same period to trade at $1,621, according to data via CoinGecko.
The U.S. Federal Reserve raised the federal funds rate by 75 basis points for the fourth consecutive time on Wednesday. The target range is now 3.75%-4%, marking the highest point since January 2008.
Markets whipsawed after the announcement as Fed Chair Jerome Powell said it's premature to think about pausing rate increases. Still, the Federal Open Market Committee indicated its latest rate hike signaled a possible end in sight.
Coinbase's third-quarter earnings on Thursday revealed expenses had fallen. Total expenses fell to $1.1 billion from $1.8 billion in the previous quarter.
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However, the exchange also reported dwindling volumes of $159 billion — less than estimates of $191 billion.
Block also reported earnings after the close on Thursday. Jack Dorsey's company had a net loss of $14.7 million in the third quarter. Bitcoin sales volume was $1.76 billion.
Block's bitcoin gross profit fell to $37 million during the quarter, down from $41 million in the second quarter.
Following earnings, both firms' shares soared on Friday. Coinbase and Block were up 12% shortly after the open, outpacing gains by the S&P 500.
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