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Bitcoin Rallies on Favourable FOMC Meeting Outcome
- Bitcoin’s hot-and-cold streak continued overnight, as the cryptocurrency gained nearly 9% after falling 15% from its peak.
- The US Federal Reserve’s decision to halt interest rate hikes was a catalyst, with the cash rate remaining steady at 5.5%.
- The reserve noted that the nation’s economy was generally steady, and that rate cuts were likely to occur throughout 2024.
- Dogecoin, Ethereum and Solana all saw strong gains on the back of the news too.
Bitcoin has had a real rollercoaster of a fortnight…which isn’t exactly a shock to the crypto market. But there’s just something about this current run that seems impossible to predict.
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Crypto analysts are split on whether BTC’s move to a new all-time high was just the beginning, or if it was premature and doomsday a correction is on the horizon.
BTC Back to $68K After 9% Recovery
Bitcoin has done its best impression of a yo-yo since last week. After starting things off with an impressive all-time high of USD $72K (AUD $109k), BTC’s price sank all the way to USD $61.5K (AUD $93K). The selling frenzy resulted in a weekly decline of nearly 15% for the ever-popular cryptocurrency – however, the losses were quickly offset by a positive result from the US Federal Reserve’s most recent meeting.
The Feds continued its policy of “watch and wait”, keeping the cash rate stable at about 5.5%. In the grand scheme of things, interest rates are still pretty high – but many Americans will be breathing a sigh of relief that further rate hikes aren’t on the horizon. The body also reiterated they plan to introduce three interest rate cuts throughout 2024, which will likely provide a short-term boost to the stock and crypto markets if they end up occurring.
The crypto world reacted positively to the news. Bitcoin pushed all the way back to $68K (AUD $102K) at the time of writing this article, and now sits about 6% behind its recent ATH.
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BTC was not the only winner from the interest rate decision, as money poured back into the market after a lean week. Dogecoin (up 15%), Ethereum (10%), Solana (10%) and Immutable (13%) all posted impressive 24h gains.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
