Crypto Market Today : Fed’s Dovish Stance Sparks Rally: Bitcoin Hits $67K, ETH, DOGE & PEPE Spike
The post Crypto Market Today : Fed’s Dovish Stance Sparks Rally: Bitcoin Hits $67K, ETH, DOGE & PEPE Spike appeared first on Coinpedia Fintech News
Once again, after a massive nosedive, Bitcoin has bounced back to the 2021 highs of $67K, rising over 10% from recent lows following the Federal Reserve’s rate decision and remarks on interest rates. Ether bounced back from a dip driven by concerns over increased SEC regulation, and dogecoin spiked after Coinbase announced its intention to list futures contracts.
Crypto Bounces Back: Bitcoin, Ether, and Dogecoin Surge After Fed’s Rate Decision
Followed by the dovish Fed commentary, all three major US stock indices – the Dow Jones, the S&P 500, and the Nasdaq – hit all-time highs, each gaining 1%. Notably, the surge in Bitcoin’s price has taken everyone aback, with a strong bounce of 9%, just after the conclusion of the FOMC meeting.
On top of that, the Federal Reserve has decided to stick with the current levels, with the benchmark overnight interest rate remaining at 5.25% to 5.50%. However, Fed officials expect a decrease in interest rates by three-quarters of a percentage point by the end of the year as part of their efforts to achieve the central bank’s 2% inflation target.
On this, Fed Chair Jerome Powell raised a minimal concern about higher inflation figures observed in January and February, instead emphasizing weaknesses in the labor market. In the current downmarket scenario, CNBC reported that Powell’s comments reflected a clear dovish stance, indicating a bullish economic outlook.
Impact on Crypto
Last week, inflation reports were higher than expected, causing traders to rethink how much they expect interest rates to drop this year. They thought rates might go down by 150 basis points at the start of the year, but now they’re thinking more like 71 basis points. The CME FedWatch tool shows that traders now think there’s a 54.7% chance the Fed will start lowering rates in June, which is a big change from what they thought.
However, the overall cryptocurrency market experienced a robust rebound following the dovish Fed commentary, with Bitcoin surging above $67,000 and Ethereum reclaiming the $3,500 level. This resurgence was largely driven by spot demand, as stable funding rates indicated a favorable environment for price appreciation. Analysts from QCP Capital anticipated further confirmation of this trend through forthcoming Bitcoin spot ETF flow data.
Despite recent regulatory concerns, particularly regarding the potential classification of Ethereum as a security by the SEC, apprehensions surrounding Ethereum eased as the market displayed resilience in the face of regulatory uncertainties.
Overall, the dovish stance adopted by the Federal Reserve contributed to bullish sentiment across both traditional and cryptocurrency markets, leading to record highs and strong rebounds in asset prices.
Filed under: Bitcoin - @ March 21, 2024 8:18 am