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Following the U.S. Federal Reserve’s anticipated choice to maintain interest rates steady during its September meeting, the cryptocurrency market saw some volatility. Bitcoin momentarily fell below the $26,900 threshold in the early hours after Fed Chair Jerome Powell’s remarks regarding possible interest rate increases to address inflation. However, Bitcoin swiftly recovered, trading above the $27,000 support level. Ethereum also experienced a decline but remained above $1,600. In the meantime, most of the leading 10 non-stablecoin cryptocurrencies reported losses over the last 24 hours, with Toncoin leading the downturn with a notable 6% drop.
As of 07:30 a.m. in Hong Kong, Bitcoin recorded a 0.28% decrease in the past 24 hours, settling at $27,137.70. Nonetheless, the largest cryptocurrency by market capitalization still achieved a weekly increase of 3.52%, according to data from CoinMarketCap.
The Fed’s announcement included a long-expected pause in its rate hike cycle, keeping rates at 5.25% and 5.50%, the highest levels seen in 22 years. The central bank also adjusted its forecast for interest rates at the end of 2023 to 5.6%, indicating the potential for another rate increase this year. Furthermore, the Fed raised its projection for the end of 2024 to 5.1%, up from the 4.3% estimated in June.
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Michael Silberberg, Head of Investor Relations at the U.S.-based crypto hedge fund AltTab Capital, expressed his astonishment at the report’s focus on slower rate reductions than previously anticipated. While regulatory issues and rate hikes continue to be a concern, Markus Thielen, Head of Research and Strategy at digital asset service platform Matrixport, pointed out some “breakout signals” for Bitcoin, including its rise above the 50-day average of $27,103, suggesting a potential bullish trend.
Ether saw a 1.26% decrease, trading at $1,622.84, yet still achieved a 0.97% weekly gain. Among the top 10 non-stablecoin cryptocurrencies, XRP and Solana’s SOL were exceptions, with increases of 1.52% and 1.33%, respectively.
Toncoin, the native token of The Open Network (TON), experienced the most significant decline, dropping 6.54% to $2.41 while maintaining a substantial weekly gain of 27.20%. The token has surged nearly 75% over the past 30 days. TON is a blockchain-based network initially developed by messaging giant Telegram. Toncoin received a boost from the launch of TON Space, a self-custodial digital wallet available to Telegram’s estimated 800 million users.
Despite the short-term fluctuations, the total crypto market capitalization slightly decreased by 0.47% in the last 24 hours to $1.07 trillion. Trading volume saw a modest rise of 2.75%, reaching $28.05 billion.
The post Cryptocurrency Markets React to Fed’s Rate Announcement appeared first on BitcoinWorld.
