Leading cryptocurrency tokens saw an increase in trade on Tuesday ahead of tomorrow’s US Federal Reserve policy announcement.
Ethereum was up 1.8% at $2,305, while Bitcoin was up 1.94% at $43,409. In the meantime, the value of the world’s cryptocurrency market increased 2.3% in the previous day to approximately $1.67 trillion.
Significant occurrences like the US January unemployment rate statistics and the Fed’s interest rate decision might have an impact on market sentiment in the following days.
In the tug-of-war between the bull and bear that has been going on for the past few weeks, the bull may eventually win if the rate decrease that is widely expected is ultimately revealed.
With fresh bullish wagers and fading grayscale selling pressure, bitcoin surged beyond $43,000 amid an optimistic mood. Reduced Bitcoin transfers to exchanges by Grayscale and predictions of new long positions above $43,000 point to a possible surge to yearly highs around $50,000.
Declining sales of GBTC, rising US stock markets, and Google’s backing for Bitcoin ETF ads are all positive indicators. The risk associated with the impending Fed meeting is that the US economy’s good data could postpone rate decreases, which would strengthen the US dollar and suppress the cryptocurrency markets.
The trade of other well-known cryptocurrencies increased today as well. Cardano and Solana had increases of 7.6% and6.5%, respectively. Dogecoin, Chainlink, Polygon, and Shiba Inu experienced a 2-3% increase. Avalanche, BNB, XRP, and Internet Computer all saw increases.
The largest cryptocurrency in the world, Bitcoin, had its market capitalization increase to $850 billion in the past day. Currently, 51.15% of the market is made up of Bitcoin, according to CoinMarketCap. The volume of BTC increased by 42% to $22.4 billion in the last day.
For Bitcoin to keep moving in the direction of $45,000, it must first breach and hold $43,500. In the coming days, we expect a rise, with Bitcoin reaching above $44,000 during this surge.
After breaking above the trend line support at $38,500, Bitcoin has been steadily rising over the past week, earning almost 12% during this time. Analysts have been speculating that this shift is mostly because they expect the Fed to stick with its rate pause, which is set to be announced this coming week.