Contrary to expectations of a market plunge, the Crypto market has rallied after the Federal Reserve increased the interest rate by 0.75%. The interest rate from financial institutions now ranges from 2.25% to 2.5% in the country, from near zero just a year ago.
While addressing the media, The Federal Reserve Chair, Jerome Powell, has vowed to continue tightening the monetary policy to tame inflation.
Contrary to projections, the Crypto market is surprisingly bullish. The rally ends the earlier forecasts that projected a prolonged bearish cycle. One of the most impressive performances is that the market capitalization is now above the $1 trillion mark. The Crypto market has regained its bullish trend that was cut short by the downward pressures of the previous week.
Bitcoin Is Headed for$24,000
In the last 24 hours, BTC has surged by 9.6% to trade at $23,135. The sharp growth has reversed the 7-day loss to a gain of 1.33% attained in a short period of 24 hours.
The daily transactions of BTC are also up as 1.5 million tokens changed hands yesterday, an indicator that investors were waiting for the Federal Reserve to make its decision.
Bitcoin is yet to breach its 90-day peak of $39 698 on May 20th, although the moving average trend analysis shows that BTC is on an upward trajectory despite the fluctuations.
Following the sharp rally, the BTC dominance in the Crypto market has increased by .2 points to 41.8% in a day.
Ethereum Widens Its Market Dominance
In the last 24 hours, the dominance of Ethereum has widened to 18.9%. The increase is due to a sharp recovery with a growth of 14.20% in the time under review. ETH is now quoted at $1,637, compounding the 7-day gain to 10%, far higher than Bitcoin.
The adoption of Ethereum Blockchain and its native token, ETH, is rising to push the prices upwards. For instance, the Bank of Korea is building a CBDC platform on the Ethereum-based Klayton permissioned open source blockchain. The Itaú Unibanco is also adopting the open-source Hyperledger Besu Ethereum client to develop a tokenization platform.
The Window for Buying the Dip is Closing
The Crypto market has been steadily rising, and digital tokens are setting higher support levels. BNB, for instance, has surged by 5.6% in the last 24 hours and currently trading at $268. XRP has grown by over 7% in 24 hours to hit $0.3584. Cardano (ADA), Solana (SOL), and Dogecoin (DOGE) have gained 9%, 6%, and 10% in the same time.
It is evident that the bears are getting weaker and short-lived while the bulls are stronger and prolonged. The trend is leading to higher prices, and the window for buying the dip is gradually closing.