Run towards a bullish weekend! The cryptocurrency market has opened the market on a positive note as the majority of large cap cryptocurrencies have turned bullish. This bull rally is led by the first born crypto, Bitcoin price which has now jumped above $23,500 level and is strongly moving towards $24K. It’s just not that, even Ethereum, BNB, XRP, Cardano, Solana and other top altcoins have regained their lost price rally.
At the time of writing, Bitcoin is valued at $23,793 after a surge of 3% in the last 24 hrs. While Ethereum has gained 5.52% over the last 24hrs and is now trading at $1,667 leading the altcoin rally.
Crypto Market Surge With Fed’s 25 bps Interest Rate Hike
This wasn’t the scene a day ago as the crypto market was dwindling before the FOMC meeting results. However, during the FOMC conference, Federal Reserve chair, Jerome Powell claimed that the committee is focused towards the 2% inflation target. The Fed also claimed that even though inflation has dropped it is still too high and needs to be curbed.
After the Fed Chair’s above statement, the crypto market did react negatively, but soon bulls took control once the US Federal Reserve announced interest rate hike. Following the FOMC meeting, the US Federal Reserve held its meeting and concluded with an interest rate hike of 0.25% or 25 bps.
Last year the financial market witnessed one of the highest interest rate hikes by the Fed which was raised from 4.5% to 4.75%. This aggressive approach was to bring down the increasing inflation rate. Meanwhile, the US stock market which the crypto assets tend to follow has also gained wherein, the S&P 500 gained 1.05% and Nasdaq 100 is up by 2.16%.
On the contrary, what needs to be noted here is, during the FOMC meeting the Fed Chair claimed that the inflation still remains high and the job is not done. This suggests that the interest rate hikes will continue further and hence, the investors and traders should consider the crypto market volatility before making any further decision.
Source: https://coinpedia.org/news/crypto-market-up-today-bitcoin-price-holds-steady-but-there-is-a-catch/