Bitcoin springs back near $43K on dovish Fed
By Laxmikant Khanvilkar
The virtual digital assets (VDA) are seen gaining strength during Asian trade after dovish comments from the Federal Reserve, sent bond yields crashing down and triggered broad-market rally for risk-assets including stocks and cryptocurrencies.
Bitcoin (BTC), the largest cryptocurrency by market capitalisation, surged to $43,000 mark following the Fed decision. It was recently trading at $42,712, indicating a gain of 2%. Ether (ETH), the second largest cryptocurrency, followed bitcoin higher and was recently trading at $2,254, adding 2% in the same period.
On Wednesday, the U.S. central bank left the Fed funds rate at 5.25%-5.5%. During the last meeting of 2023, the December Federal Open Market Committee (FOMC) projected the rate would come down to 4.6% by the end of 2024, suggesting a roughly three 25 basis point cuts. That’s largely supportive for risky assets.
Broader market space too benefited from investor optimism. Large-cap tokens of Avalanche (AVAX), Cardano (ADA) and Injective (INJ) posted near 10% gains.
Apparently, the global crypto market cap increased by 3% to $1.61 trillion in the last 24 hours. The total crypto market volume edged up 0.8% to $69.9 billion. Total volume in DeFi is currently $7.8 billion, and all stablecoins are $63.2 billion, representing 11.2% and 90.2%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 52.18%, up 0.35% over the day.
The IC15 index, the barometer of the top fifteen tokens, surged 3.3% to 54,225.
Meanwhile, Crypto-related stocks also jumped higher. Crypto exchange Coinbase closed the trading session almost 8% higher, while Michael Saylor’s MicroStrategy gained 5%. Marathon Digital, Riot Platforms, CleanSpark – often seen as a leveraged bet on BTC – were up 8%-16% through the day.
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