Cryptocurrency

Bitcoin rebounds to $66,000 after the Federal Reserve keeps interest rates steady

The Federal Reserve’s decision to keep the federal funds rate steady in an unexpected turn of events that has boosted investor morale has sparked a notable rally in several financial markets, led by Bitcoin and the broader cryptocurrency sector. .

The Federal Reserve’s announcement on Wednesday that it would keep interest rates on hold at 5.25% to 5.50% for a fifth consecutive session, and most officials hinting at a possible rate cut in 2024, served as a catalyst for the broader market rally.

According to data from CoinMarketCap, Bitcoin witnessed a stunning surge breaking the $66,000 barrier in just two hours after the Fed’s announcement. This is up from the day’s low of $60,976.

Bitcoin witnessed a stunning surge after the Fed's announcement, breaking the $66,000 barrier from the day's low of $60,976 in just two hours.
Bitcoin witnessed a stunning surge after the Fed’s announcement, breaking the $66,000 barrier from the day’s low of $60,976 in just two hours. Source: CoinMarketCap

This immediate price rise highlights the market’s positive reaction to the Fed’s decision, which is interpreted either as the central bank’s confidence in the current state of the economy or as a strategic delay in tightening financial conditions, both of which are perceived as favorable to risky investments. . Like cryptocurrency.

Interestingly, ahead of this meeting Bitcoin suffered its first serious decline in weeks. plunged by more than 15% It rose from an all-time high of $73,646 on March 14 to $62,373 on March 19.

“After an impressive rally over the past few months, Bitcoin appears to have decided to take a break as many investors took profits before Powell’s speech today.” Ruslan LyenkaYouHodler’s Head of Markets spoke to AlexaBlockchain earlier today.

Moreover, the broader cryptocurrency market It also followed the Bitcoin rebound. Ethereum’s ETH token surged more than 9%, reaching $3,479 from today’s low of $3,186, while Solana’s SOL rose 14%, Stacks STX rose 27%, Dogecoin rose more than 20%, and Conflux CFX also rose more than 20%. From the CoinMarketCap show.

The stock market also shared the joy, All three major indices – the S&P 500, Nasdaq and Dow Jones Industrial Average – posted significant gains. In particular, the S&P 500 surpassing 5200 is an important milestone and signals strong confidence among stock investors.

This collective upward trend highlights broader market optimism, driven by expectations of a more accommodative monetary policy environment in the near future.

fun, The Fed’s decision came as its target interest rate reached a 23-year high of 5.25% to 5.5%, underscoring the delicate balance the central bank seeks to maintain between promoting economic growth and curbing inflation.

Since the announcement, the stock index has captured the attention of investors with notable movements in individual stocks, such as Chipotle, which announced a 50-for-one split, further solidifying its positions. Meanwhile, Supermicro experienced a slight decline following the completion of its initial public offering, demonstrating a mixed reaction within the stock market to broader economic signals.

Currency and bond markets were untouched. As per the decision of the Federal Reserve. In particular, the dollar’s strength against the Japanese yen following the Bank of Japan’s interest rate hike and the benchmark 10-year Treasury yield falling slightly from 4.296% to 4.275% indicate a subtle rebalancing of investor expectations across asset classes.

Synchronized rise across various markets This highlights the broader sentiment that the Fed’s current monetary policy stance could herald a phase of economic stability and growth, encouraging risk-taking and investment in both traditional and alternative assets. However, as markets adjust to the Fed’s future guidance, investors will closely monitor economic data and Fed communications for signs of a change in policy direction that could impact their newfound optimism.

Also Read: Binance Founder Changpeng Zhao Launches New Venture Called ‘Education Project’

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