The cryptocurrency market has shown a mixed response to the latest interest rate hike by the US Federal Reserve. Bitcoin (BTC) experienced a brief surge, reclaiming the $29,000 mark after remaining relatively flat immediately following the announcement. However, the asset’s performance has been volatile, with the price dipping back to $27,600 only to rise again above $29,000. The market capitalization currently hovers north of $560 billion, while BTC’s dominance over altcoins has slightly increased to 47.1%.
The Federal Reserve’s interest rate hike decision led to immediate fluctuations in the market, with Bitcoin’s uncharacteristic insignificant response initially raising concerns. The central bank’s new rates are now at 5%, which some experts thought could potentially affect the cryptocurrency market significantly. While it is true that Bitcoin’s skyrocket to $30,000 this month did not last long, it cannot be denied that the asset remains strong in the face of market fluctuations, as seen in its current value.
As we shift focus to alternative coins, Ethereum (ETH) appears to be among the significant gainers following the Fed’s recent announcement. It has experienced a 2% increase, pushing its price upward to stand at $1,900. Binance Coin, Cardano, Dogecoin, Polygon, Solana, Polkadot, Shiba Inu, and Avalanche have also experienced relatively slight gains in value.
However, not all altcoins have experienced such gains. FTM, for instance, has only risen by over 6% in the past 24 hours, making it the best performer from the top 50. The highly anticipated SUI token began trading yesterday, as its mainnet went live. While the token surged to $3.5 initially, it experienced a sharp decline to under $1.5 hours later, ultimately painting an uncertain future for this newcomer.
While it may be too early to judge the long-term implications of this latest interest rate hike on the cryptocurrency market, it is vital to keep an eye on the dynamics behind these fluctuations. The total crypto market cap has inched closer to the $1.2 trillion mark after gaining around $15 billion. As crypto enthusiasts, it is essential to consider the risks associated with these investments and always conduct thorough research before making any investment decisions. In an ever-changing market, staying informed and understanding the factors behind these changes is key to making informed choices on the path to success in the cryptocurrency world.