Bitcoin Hits 17-Month High After Fed’s Dovish Tone
The cryptocurrency market saw a surge in prices on Thursday, with Bitcoin and other tokens posting big gains. The surge came after the U.S. Federal Reserve’s Federal Open Market Committee (FOMC) confirmed the anticipated interest rates.
Bitcoin and Ethereum Surge
Bitcoin, the oldest crypto asset, surged more than 3 per cent, racing past the $35,500-level. At the same time, Ethereum, Bitcoin’s largest peer, also saw an increase of about 3 per cent, but remained below the $1,900-level. Additionally, many altcoins were trading with sharp gains.
Market Optimism and Rise in Prices
The announcement of the unchanged interest rates by the Federal Reserve infused the market with optimism, leading to a steady rise in Bitcoin’s price over the past day. Edul Patel, Co-founder and CEO at Mudrex, noted that the announcement had a positive impact on the market.
Sharp Gains in Altcoins
With the exception of the US dollar pegged USD Coin, the majority of top crypto tokens were trading sharply higher on Thursday. Solana surged more than 11 per cent, while Polygon was up 8 per cent. Cardano and Polkadot jumped 7 per cent, and Chainlink and Tron gained about 4 per cent each in early trade.
Global Market Cap and Trading Volumes
The global cryptocurrency market cap rose significantly to the $1.32 trillion-mark, jumping more than 3 per cent in the last 24 hours. Additionally, the total trading volumes surged about 43 per cent to $57.45 billion.
Positive Market Reaction
The crypto market reacted positively to the unchanged interest rates by the Federal Reserve, pushing the global crypto market cap up to around $1.35 trillion. Parth Chaturvedi, Investments Lead at CoinSwitch Ventures, stated that the top 20 cryptos were currently trading in the green.
Crypto Token Insights by WazirX Trade Desk
Solana(SOL), an open-source project offering decentralized finance (DeFi) solutions, experienced a significant surge in price. The SOL/USDT chart had been traversing within an ascending channel pattern on the daily time-frame, breaking above the upper trendline with significant momentum in price.
In the coming week, the token is expected to continue its momentum, with the next resistance at 48.6 USDT and an immediate support at 38 USDT.
Despite the overall positive sentiment, SafeMoon (SFM) faced a decline of over 50% in the last 24 hours, attributed to the company’s CEO and CTO being taken into custody for fraud.
As the crypto market continues to experience volatility, it is recommended to consult a financial adviser before making any investment decisions.