Bitcoin Price Climbs As Fed Meeting Suggests Slowing Down Interest Hikes
Bitcoin and its fellow crypto assets made a little recovery today that helped the market capitalization of the entire crypto market increase by 2.1% over the last 24 hours.
BTC peaked at $16,769 before settling at $16,702 at the time of this writing, according to latest tracking from Coingecko. Its rival, Ethereum, is up by more than 3% for the past day and is trading at $1,211.
All altcoins (stablecoins excluded) belonging to the top 10 list based on market capitalization tallied increases on their own, with Litecoin (LTC) leading the charge with its 35.4% price pump during the last seven days.
Solana, which was hit hardest by the collapse of the FTX crypto exchange platform, also registered an increase, going up by 10.5% over the last 24 hours to trade at $14.55.
Collectively, Bitcoin and the altcoins helped the crypto market push its overall valuation to $874 billion although it is still significantly lower than its market cap towards the end of October and the first days of November.
Fed Reserve To Slow Down Rate Hikes; Bitcoin Responds Positively
Although the threat of recession continues to grow and is looming just around the corner, officials of the Federal Reserve have announced its plans to decrease its interest rates.
It can be recalled that since March this year, the U.S. central bank has been aggressively raising interest rates to combat inflation. In just a matter of few months, the near-zero rate rose to a 15-year high of 3.75 to 4%.
That was just the tip of the iceberg as the office has publicly expressed its plans to continue implementing hikes until such time that inflation change rate hit the 2% target.
The plan to slowdown is for the Federal Reserve to have enough time to evaluate the effects of the previous interest rate increases to the country’s economy.
Shortly after this development went public, Bitcoin responded positively as it went up by more than 2.5% and breached the psychological $16,700 marker.
Still An Uphill Climb For Bitcoin, Crypto Assets
Even though Bitcoin and Ethereum and some of the more popular altcoins managed to paint their immediate timeframe charts in green, they are still far from their level when the crypto market made a bullish run in late October.
BTC continues to struggle hitting the $17K region once again and is now several steps away from the $21K territory it reclaimed earlier this month. In the same passion, Ethereum is also miles away from the kind of performance it had when it rallied to topple the $1,700 barrier region.
Still, if these digital currencies are able to keep the ship afloat over the next few days, there is a good chance that the crypto market will close the year 2022 in a better shape as it prepares to start 2023 in a good note.
BTC total market cap at $317 billion on the daily chart | Featured image from Coin Edition, Chart: TradingView.com