Crypto market rises sharply after Fed rates remain unchanged

Crypto market overview: The crypto market has reacted positively to the unchanged interest rates by the Federal Reserve, pushing the global crypto market cap up by over 3.5 per cent to over $1.35 trillion. The top 20 cryptos by market cap are currently trading in the green. 

BTC crossed the $35,000 mark after the FOMC news. Leading the market gains was Solana, which rose by 9.7 per cent and is trading around $42—its 14-month high. The crypto fear and greed index have also surged after the decision to reach the mark of 72 out of 100. 

While talking to Republic about the crypto market movement, Parth Chaturvedi, Investments Lead, CoinSwitch Ventures, said, “Despite a strong investor sentiment, amongst the top losers was SafeMoon (SFM) which is down by over 50% in the last 24 hours. The decline, however, comes as the company’s CEO and CTO have been taken into custody for fraud. The defendants are now facing criminal charges.”

CoinDCX Research Team also talked to Republic sharing their insights. CoinDCX said, “From a technical perspective, BTC successfully broke through the crucial $35,000 resistance level and closed the daily candle above it, indicating a bullish sentiment. While a short-term retracement might occur, the path appears to be pointing towards the resistance levels around $39,800 to $40,000. In contrast, ETH still needs to surpass its 2023 resistance levels, located at approximately $2,020 and $2,140, to pave the way for further upward movement.”

Fed rate remains unchanged

In positive news, during the FOMC meeting held yesterday, the decision was made to maintain the interest rate at 5.25-5.50 per cent, keeping key interest rates unchanged at a 22-year high.

Rajagopal Menon, Vice President, WazirX, talked to the Republic about the future of the crypto market in case of potential rate hikes in the next fed meetings. Menon said, “The Federal Reserve hinted at a possible future rate hike, impacting financial conditions. This suggestion of a shift in rate policy has the potential to provide further momentum to crypto markets, solidifying Bitcoin's role as a hedge against loose monetary policies and reduced yields.”

Shivam Thakral, CEO of BuyUcoin, said, “Bitcoin (BTC) has breached the $35,000 level again while Ether is very close to hitting the $ 1900 mark, outperforming BTC by a few basis points.  Invesco Galaxy spot Bitcoin ETF has been listed along with BlackRock on the DTCC site, adding to the existing euphoria around Bitcoin ETFs. The market will remain volatile in the coming days due to the rapidly evolving macroeconomic conditions.”

Crypto maket predictions

Edul Patel, Co-Founder, Mudrex, shared an overview of the current market scenarios. Patel said, “The fed rate decision has improved market optimism and created a bullish sentiment, resulting in a steady growth in Bitcoin's price. Market participant's currency awaits the upcoming US Labor Department nonfarm payrolls report, scheduled for Friday. Meanwhile, Solana has witnessed an impressive price surge of more than 11% over the last 24 hours.” 

While Vikram Subburaj, CEO, Giottus, shared a detailed perspective of how crypto market is likely to behave in the near future. Subburaj said, “This anticipated move by Bitcoin post its golden cross primes it for a strong performance in November as well unless US jobs data indicates other macro issues. The next big level that Bitcoin needs to push for is $38,000 if it holds its current levels in the upcoming days. While a few altcoins (including Solana) have outdone Bitcoin this week, BTC dominance continues to maintain around 54% indicating that the top crypto asset continues to attract most investors.”