The cryptocurrency markets were up on Thursday after the US Federal Reserve held interest rates constant and Chair Jerome Powell hedged on the conclusion of the rate hike cycle.
On Wednesday, the Federal Reserve maintained interest rates constant as policymakers tried to discern whether financial conditions are already tight enough to limit inflation, or whether an economy that continues to beat expectations requires even more restraint.
Powell said after a two-day policy meeting that, given the uncertainties, the best course of action for now was to keep the Fed’s benchmark overnight interest rate in the current 5.25%-5.50% range and watch how job and price data evolve between now and the next policy meeting in December.
Meanwhile, in the 24 hours following the Fed’s decision, the worldwide cryptocurrency market cap increased by 2.45% to more over $1.3 trillion.
At roughly 12.40 p.m., Bitcoin was trading 2.5% higher at $35,308, while Ethereum was trading 1.9% higher at $1,837.
Following the decision by the United States Federal Reserve’s Federal Open Market Committee (FOMC) that interest rates will remain unchanged at 5.25%-5.50%, Bitcoin has been trading above the $35,500 mark. This has improved market morale and resulted in an optimistic feeling, with Bitcoin’s price gradually rising over the last 24 hours.
Market participants are now waiting for the US Labour Department’s nonfarm payrolls report on Friday, according to Edul.
Solana was the highest gainer among top crypto tokens, climbing more than 12%. Cardano, Polygon, Polkadot, and Avalanche all increased by more than 6%, while BNB, XRP, Dogecoin, Litecoin, and Shiba Inu increased by 2-3%.
The entire volume in DeFi is currently $6.12 billion, accounting for 10.34% of the total 24-hour volume in the crypto market. The total volume of all stablecoins is now $53.02 billion, accounting for 89.62% of the total 24-hour volume of the crypto market.
The market capitalization of Bitcoin, the world’s largest cryptocurrency, has risen to $689 billion in the last 24 hours. According to CoinMarketCap, Bitcoin presently has a 52.77% market share. Bitcoin volume fell 68% in the last 24 hours to $25.8 billion.
Technically, BTC broke over the critical $35,000 barrier level and closed the daily candle above it, signalling a positive mood. While a short-term pullback is possible, the trend appears to be headed towards resistance levels in the $39,800 to $40,000 range.
In contrast, ETH still needs to break through its 2023 resistance levels, which are at $2,020 and $2,140, to open the way for further gains.