On Tuesday evening, major cryptocurrencies saw a significant boost, likely due to the impending Federal Reserve decision. Bitcoin, the leading digital currency, recorded a 2.10% gain, reaching a price of $27,289. Moreover, Ethereum followed suit with a 0.80% surge, priced at $1,646. Additionally, Dogecoin reported a gain of 1.37% at $0.062.
Significantly, the Federal Reserve’s announcement on Wednesday is generating much anticipation. Market insiders anticipate a decision to maintain the current interest rates. Consequently, investors are gearing up to scrutinize any new economic projections and statements from Chairman Jerome Powell.
Although Bitcoin’s rally was less prominent than some hoped, it managed to sustain above the $27,000 mark. Hence, it remains an asset of interest as debates on the best hedge against inflation intensify. Events such as Benzinga’s Future of Digital Assets event in NYC this November are pivotal in understanding such dynamics.
Besides Bitcoin, other cryptocurrencies also shined. Conflux emerged as the top gainer over 24 hours with a 5.77% leap, followed closely by GMX and Flare. The global crypto market capitalization hovers around $1.09 trillion, marking a 0.87% increase from the previous day.
However, in contrast to cryptocurrencies, stocks seemed subdued. The S&P 500 saw a dip of 0.22%, and the Nasdaq Composite edged down by 0.23%. This demonstrates investors’ cautious stance as they await the outcome of the Federal Reserve’s policy deliberations.
Crypto analyst Michael Van de Poppe’s recent tweets have stirred conversations around Bitcoin’s potential correction. He suggests a strong possibility for Bitcoin’s bottoming out, hinting at establishing a new uptrend.
Another perspective comes from analyst Benjamin Cowen, who believes Bitcoin’s dominance is set to grow. He asserts that liquidity from altcoins is gravitating back to Bitcoin. Furthermore, according to Crypto Tony, a drastic plunge of Bitcoin to $20,000 is unlikely soon.
A noteworthy point comes from data by Santiment. It reveals that Bitcoin’s surge to $27.2K is linked to the launch of an Adoption Fund by Nomura, Japan’s premier investment bank. Such developments underscore the crypto’s global influence and potential.
In conclusion, as the Federal Reserve decision looms, the cryptocurrency market remains in the spotlight, with analysts and investors closely monitoring every move.
Source: https://bitcoinworld.co.in/cryptocurrency-surge-ahead-of-federal-reserve-decision-what-it-means/