As Fed meeting suggests slowing down interest rate hikes, the price of bitcoin increases.
Today’s modest comeback by Bitcoin and its peer cryptocurrencies contributed to a 2.1% increase in the market value of the whole cryptocurrency market over the previous day.
According to the most recent tracking from Coingecko, BTC reached a high of $16,769 before settling at the time of this writing at $16,702. The price of Ethereum, a rival, has increased by more than 3% over the last day and is at $1,211.
Litecoin (LTC) led the charge with its 35.4% price increase over the past seven days, but all altcoins (stablecoins excluded) in the top 10 list based on market capitalization saw increases on their own.
Solana, which was the most severely impacted by the demise of the FTX cryptocurrency exchange platform, also experienced an uptick, rising 10.5% in the previous day to trade at $14.55.
Although the market’s overall worth of $874 billion is still much lower than what it was at the end of October and the beginning of November, Bitcoin and the altcoins collectively contributed to this increase.
Fed Reserve To Halt Rate Increases; Bitcoin Reacts Favorably
Federal Reserve officials have revealed their intentions to lower interest rates even though the risk of a recession is growing and is just around the horizon.
You may recall that the U.S. central bank has been sharply hiking interest rates to fight inflation since March of this year. The near-zero rate increased to a 15-year high of 3.75 to 4% in only a few short months.
That was just the beginning, as the office has stated publicly that it intends to go on enacting increases until the inflation change rate reaches the 2% target.
The purpose of the slowdown is to give the Federal Reserve adequate time to assess how the country’s economy has been affected by prior interest rate rises.
When this news broke, Bitcoin reacted favorably by rising more than 2.5% and crossing the psychological $16,700 threshold.
For Bitcoin and other crypto assets, the road is still uphill
Even if some of the more well-known cryptocurrencies, like Bitcoin, Ethereum, and some of those who managed to paint their immediate term charts in green, they are still much behind where they were when the cryptocurrency market saw a bullish surge in late October.
BTC is now several steps away from the $21K zone it recaptured earlier this month as it struggles to move past the $17K region once more. In the similar vein, Ethereum has fallen well short of the performance it displayed when it rose to break through the $1,700 resistance zone.
However, there is a high potential that the crypto market will end 2022 in better health as it gets ready to begin 2023 on a positive note if these digital currencies can keep the ship afloat over the next few days.