Bitcoin Reclaims $40K After the Enhanced Volatility Prompted by Fed’s Interest Hike (Market Watch)

Bitcoin’s price went down and up by a few grand following the US Federal Reserve’s announcement about increasing interest rates. Avalanche has marked the most substantial price increase from the altcoins with a notable near 10% surge.

Bitcoin’s Fed-Propelled Roller-Coaster

Following several days of relatively calm behavior around the $39,000 level, bitcoin reminded of its volatility in the past 48 hours. As reported yesterday, the asset skyrocketed by almost $3,000 to a daily high at over $41,500 before it dumped just as suddenly and quickly back to $39,000.

However, the bulls returned to the scene and pushed BTC upwards to above $40,000. The cryptocurrency remained north of that level for most of the day, but then came the latest Federal Reserve meeting.

As Jerome Powell, Fed’s chair, announced plans to increase the interest rates by 25 basis points immediately, BTC went on the downhill and dropped by over $1,000 in minutes. Yet, the asset bounced off quite rapidly again and briefly exceeded $41,000.

As of now, bitcoin has lost some traction and stands just shy of that last price line, but it’s still up by 1% since yesterday, and its market cap is close to $800 billion.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

AVAX Leads With 10% Surge

The alternative coins went through similar price movements yesterday, but most are still in the green on a daily scale.

Ethereum is up by 3% and trades above $2,700. The second-largest cryptocurrency had dumped to and below $2,500 earlier this week.

Binance Coin, Ripple, Dogecoin, Shiba Inu, and CRO have produced minor gains. Solana and Cardano are up by around 4% each to $87 and $0.85, respectively.

Avalanche is the most substantial gainer from the larger-cap alts with a 9.5% increase. As a result, AVAX has neared $80.

The Sandbox is another impressive performer (7.5%) after a notable partnership with HSBC.

The crypto market cap is up by more than $110 billion in two days and stands well above $1.8 trillion now.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto
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Cryptocurrency charts by TradingView.

Source: https://cryptopotato.com/bitcoin-reclaims-40k-after-the-enhanced-volatility-prompted-by-feds-interest-hike-market-watch/