The cryptocurrency market was in the ‘green’ on Wednesday. However, the market jumped after the U.S. Federal Reserve hiked the interest rates but also mentioned that they might slow down the pace at which such raises are implemented. The digital currency space is often interlinked with U.S. stocks, especially, Nasdaq. This is why the entire market soared as the Nasdaq Composite Index gained 4% on Wednesday. The Fed rate hike was earlier thought to induce a downturn but the fact that they are considering a slower pace has just done the opposite.
Antoni Trenchev, cryptocurrency wallet Nexo’s Co-Founder, mentioned in a research note that:
“The conclusion of Wednesday’s Fed meeting opens up a summer window for a Bitcoin relief rally, given we now have two months until policymakers next deliberate on monetary policy. The next 24 hours will be a true test of Bitcoin’s re-discovered resilience after it shrugged its shoulders at this month’s stellar U.S. inflation data and didn’t wince when Tesla announced it had sold most of its BTC (bitcoin) holdings.”
Crypto Market Surge
Some major coins saw a bullish rally on Thursday, July 28, 2022. The performance has been summarized at the time of writing.
Bitcoin (BTC), the largest cryptocurrency, saw a jump of 7.56% as it traded at $22,958.47 on Thursday. The market capitalization of the BTC token stood at $438.41 billion, up by 7.55%. Additionally, the 24-hour trade volume of the crypto surged by 34.07% and was at $35.3 billion. A few hours prior to that, Bitcoin had crossed the 23,000 mark, gaining over 9% from its value 24 hours ago. The crypto recorded the day’s high at $23,358.34. The BTC crypto was seen nearing its 1-month peak of $24,196.82 as the announcement of a slower pace of Fed rate hike implementations came in.
Ethereum (ETH), the second-largest digital currency, surpassed Bitcoin’s gains and was up by 11.23% as it traded at $1,624.85. The market capitalization of the ETH token stood at $197.35 billion, up by 11.22%. In addition, the 24-hour trade volume of ETH increased significantly by 42.37% and was at $24.8 billion. Further, Ethereum Classic (ETC), which is popularly known as the older version of ETH, saw a price hike of 28.11% as it traded at $34.44.
Another significant cryptocurrency, Solana (SOL), saw a gain of 7.61% as it traded at $39.46. The market capitalization of the SOL token stood at $13.6 billion, up by 7.62%. Moreover, the 24-hour trade volume of the digital token skyrocketed by 69.23% and was at $2.07 billion. It recorded the day’s high at $40.39, which is far lower than the 1-month peak of $47.10. Also, it was seen that it took over a week to cross the $2 billion mark for its daily trade volume.
Earlier on Wednesday, the Fed rate hike announcement marked a 0.75% rise in the benchmark interest rate of the regulatory body. This was a move to control the surging inflation rates without letting the economy be in a recession phase.