Bitcoin and other cryptocurrencies saw a rise in trading on Thursday following the US Federal Reserve’s announcement of a 25 basis point increase in interest rates, in line with expectations.
The Fed also stated its readiness to raise rates further if necessary, which limited gains in digital assets.
Bitcoin experienced a slight increase, reaching just below the $29,500 mark, while Ethereum outperformed with a gain of over 1% but remained below $1,900. Altcoins also saw higher prices.
The interest rate hike, the largest since 2001, had a notable impact on the crypto market, according to Mudrex’s Co-founder and CEO, Edul Patel.
“Bitcoin, which had dipped to a low of $29,097 on Tuesday, has now shown signs of recovery and is trading above the $29,400 mark.
However, to fend off the aggressive bears, the bulls need to drive the price back up and maintain it above the $31,000 threshold. Meanwhile, Ethereum was observed being traded at the $1,870 level,” he stated.
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On Thursday, most of the top crypto tokens saw gains, with Solana surging 6%, and Polygon and Bitcoin Cash rising 3% each. Cardano, Litcoin, and Polkadot also recorded 2% increases. However, some tokens performed poorly, with Toncoin dropping 4% and Dogecoin down by over 2%.
The global cryptocurrency market cap rose to $1.19 trillion, a 1% increase in the last 24 hours, while trading volumes spiked by over 16% to reach $30.56 billion.
Bitcoin’s value remained stagnant, struggling to surpass $30,000, amid uncertainty about the Federal Reserve’s expected 25-basis point rate hike.
Last week, Bitcoin investment products experienced a $13 million outflow, according to CoinDCX Research Team.
He added, “XRP has emerged as the most traded altcoin of 2023 so far, with a record-breaking $150 billion trading volume.
The crypto has benefited from the recent court ruling that it is not a security, capturing the attention of traders worldwide and signaling a potential shift in how crypto assets are perceived and regulated.”
