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The Federal Reserve committee’s decision to hold rates at 5.25-5.5% on Wednesday was no surprise, it took a dovish twist by emphasising that rates would not be cut until it had more confidence that inflation was truly beaten.
In a media conference, Fed Chair Jerome Powell flatly stated a cut as early as March seemed unlikely, but also conceded that everyone on the committee was looking to ease this year.
Meanwhile, the global cryptocurrency market cap declined 2.5% to around $1.69 trillion in the last 24 hours, as per data available on CoinGecko.
At 10.16 a.m., Bitcoin was trading 2% lower at $42,093, while Ethereum was down 3.2% at $2,264. Another popular altcoin such as Solana and Avalanche fell over 5% each. While BNB, XRP, Cardano, Donecoin, Chainlink, Polygon, and Shiba Inu also declined by 1-3%.Following the US Federal Reserve’s decision to maintain interest rates, Bitcoin slipped below the $43,000 mark as investors anticipated a potential rate cut in March, said Edul Patel, CEO of Mudrex.Shivam Thakral, CEO of BuyUcoin, said, “The Altcoin market also took a downturn which could change unless Ethereum breaches $2500 amid other positive macroeconomic factors.”The total volume in DeFi is currently $5.91 billion, 14.36% of the total crypto market 24-hour volume. The volume of all stablecoins is now $14.53 billion, which is 35.31% of the total crypto market 24-hour volume, as per data available on CoinMarketCap.
In the last 24 hours, the market cap of Bitcoin, the world’s largest cryptocurrency, dropped to $824 billion. Bitcoin’s dominance is currently 54.42%, according to CoinMarketCap. BTC volume in the last 24 hours surged 12.7% to $25.73 billion.
“Bitcoin’s recent drop below $43,000 followed a hawkish stance by Federal Reserve Chairman Jerome Powell, suggesting a March rate cut is unlikely. However, the broader economic environment favors Bitcoin in 2024 with expectations of a possible Fed rate cut, which traditionally boosts cryptocurrencies,” said Sathvik Vishwanath, Co-Founder & CEO, Unocoin.
“Additionally, expectations surrounding the April halving of Bitcoin and potential supportive US political and fiscal dynamics add to the bullish outlook. Despite the near-term uncertainty, Bitcoin’s price trajectory is set for a potential rally to the low $50,000s, outweighing the prospect of a dip to the low $30,000s in the foreseeable future,” Sathvik added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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