The cryptocurrency market projected a sharp rebound as FOMC revealed its plan to keep interest rates steady. FOMC rate anticipation was driving the crypto market to undergo a notable price slump.
After touching an ATH of $70,000, the anticipation drove Bitcoin to fall below $64K, causing a mildly concerning scenario to take shape. However, after Fed Chair Jerome Powell announced its plan to keep interest rates unchanged, the market took a sharp green turn, compelling crypto coins to ascend to their usual stable price thresholds.
Also Read: Federal Reserve Leaves Interest Rates Unchanged Yet Again
Bitcoin at $67,000, ETH at $3,600
After the FOMC rate revelation, the cryptocurrency market took a sharp rebound, reflecting its momentum in green. Once the anticipation dissipated, trader sentiment turned positive, revealing the bullish phase. Bitcoin climbed to $67K, followed by Ethereum, which touched the $3,600 mark by the end of the day.
Dubbed a rebound with “vengeance,” leading crypto coins, including Solana, BNB, and XRP, re-routed their paths, marking massive price hikes. While SOL stabilized at $188, XRP and BNB were noted sitting at $550 and $0.66, respectively.
It wasn’t just the cryptocurrency sector that projected an overall positive market response. The Fed’s decision to keep rates stable for now further impacted the sector of equities, sending S&P’s soaring to new highs.
Also Read: XRP Echoes Its 2017 Nostalgic Bull Ride: Can It Breach $1 Soon?
Meme Coins Soar as Market Movement Supports Bullish Trend
With the stark market shift, leading meme currencies have also noted significant price shifts and movements. Shiba Inu is up 9% in the last 24 hours, followed by PEPE and DogWifHat, which spiked nearly 20% and 19%, respectively.
Similarly, other notable meme tokens such as FLOKI Inu, BONK, and WEN also projected considerable price hikes. While Floki Inu is up 37% in the last 24 hours, BONK and Wen have also rebounded, noting an uptick of 8% and 25%, respectively.
Correlation of Fed Rates and Crypto Markets
The cryptocurrency market shares an inverse relationship with the Fed rate revelations. The correlation can be further simplified as traders’ sentiment that drives them to allocate their funds towards secure resources when encountering inflationary pressure.
Whenever Fed rates are hiked, a trader will often rummage through resources that can solidify his returns during economic meltdowns. This means moving away from riskier, volatile markets like crypto to solid verticals like bonds and shares.
Similarly, traders may feel at ease exploring volatile markets with a high risk ratio when the Fed rates are down.