The Fed acknowledged it is making real progress in easing inflation while maintaining a rate pause and adding that hikes were not the base case anymore.
Fed Chair Jerome Powell said the Fed is aware of the risks of keeping rates higher for too long and lowering them too late, bolstering expectations of a rate cut in early 2024.
At 11:11 a.m., BTC was trading 4.6% higher at $42,784, while the second most popular token, Ethereum, was up 4.2% at $2,259. At the same time, the global cryptocurrency market cap advanced by 4.4% in the last 24 hours to approximately $1.6 trillion.
“Bitcoin swiftly rebounded to the $43,000 mark as the Federal Reserve maintained steady interest rates and hinted at potential rate cuts in the coming year,” said Edul Patel, CEO of Mudrex.The market also had a boost from the US Financial Accounting Standards Board (FASB), which announced new accounting regulations mandating companies like MicroStrategy, Tesla, and Block to assess their cryptocurrency holdings at fair value, Edul added.
Meanwhile, CoinDCX said, “Over the last 24 hours, the market displayed positive momentum as both BTC and ETH saw a rally of approximately 4%. This recovery could reflect the market’s anticipation of the potential approval of a spot BTC exchange-traded fund (ETF) in January 2024, aligning with notable cash inflows from institutional investors.”Other popular altcoins, like Cardano, Solana, Polkadot and Avalanche, rallied 8-17%. Also, BNB, XRP, Dogecoin, Tron, Chainlink, Toncoin, Litecoin and Shiba Inu surged.
The volume of all stablecoins is now $58.89 billion, which is 90.41% of the total crypto market 24-hour volume.
Bitcoin’s dominance is currently 52.17%, according to CoinMarketCap. BTC volume in the last 24 hours fell 1% to $24.9 billion.
Tech view by Sathvik Vishwanath, Co-Founder & CEO, Unocoin
Bitcoin’s resistance appears at $42,811, followed by $43,753 and a sturdy barrier at $44,838. Immediate support is $41,728, with safety nets of $40,744 and $39,797.
Technical signals show an RSI of 40, indicating a potential consolidation. The 50-day EMA at $42,119 indicates a preliminary bullish bias. Chart patterns show indecision near the pivot, with Doji candles indicating a potential upside move. Bitcoin’s trend appears neutral with a cautious bullish bias above $42,000.
In the short term, it may challenge $42,811 with potential for higher levels under favorable market sentiment and macroeconomic factors such as Federal Reserve decisions.
(With inputs from agencies)
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