Bitcoin Soar Above $67K On Dovish Fed Comments; Ether Stages Comeback
By Laxmikant Khanvilkar
Virtual digital assets (VDA) recorded sharp recovery in the past 24-hours led by Bitcoin (BTC), the largest cryptocurrency by market capitalisation, climb above $67,000 as Federal Reserve Chair Jerome Powell reiterated three rate cuts this year while maintaining dovish tone. The central bank doesn’t see any need to change its stance even as inflation remained at elevated level.
Bitcoin soared to $67,781 at one point in time, adding over 10%. It has since pared gains and was recently changing hands at at $67,919 adding 8%.
Bitcoin suffered a sharp correction in price after hitting record high, just shy of $74,000 last week. The correction followed hotter-than-expected inflation readings in the U.S.
Fed maintaining dovish stance has provided a relief for broader financial markets.
Major altcoins like Ethereum (ETH) and Solana (SOL) have rebounded sharply.
Ethereum (Ether), the second largest cryptocurrency by market capitalisation, was down 6% earlier in the day as reports surfaced about Ethereum Foundation facing a confidential inquiry from an unnamed government and the U.S. Securities and Exchange Commission considering classifying the asset as a security.
The token brushed aside those fears while staging a smart price recovery. It was recently trading at $3,519, up 9%.
Coinbase plant to offer futures on Dogecoin (DOGE), litecoin (LTC) and bitcoin cash (BCH) led gains among major cryptocurrencies. Coinbase plan is posted on a U.S. regulator’s website several weeks ago.
The global crypto market cap increased 7.6% to $2.55 trillion in the last 24 hours. On the other hand, the total crypto market volume fell 12% to $167 billion. Total volume in DeFi is currently $13.4 billion, and all stablecoins are $150.6 billion, representing 8% and 90%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 52.3%, unchanged over the day.
The IC15 index, the barometer of the top fifteen tokens, surged 8% to 86,374.
Meanwhile, Solana has replaced Ethereum as the No. 1 smart-contract blockchain by trading volume.
Trading volume in Solana-based decentralized exchanges (DEX) has increased 67% to $21.3 billion in seven days, data tracked by DeFiLlama show. Volume in Ethereum-based decentralized exchanges rose 3% to $19.4 billion over the same period.
Traditional markets also climbed higher. The S&P 500 index jumped nearly 1% to a fresh all-time high, while the tech-heavy Nasdaq-100 gained 1.3%. The U.S. dollar index (DXY), which measures the strength of the dollar against other major currencies, declined nearly 0.7% from its session high, signaling a greater risk appetite among investors.
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