Bitcoin reaches $100K under the Fed’s steady hand; ETH and other altcoins rise
After Jerome Powell of the US Federal Reserve acknowledged the ongoing strength of the economy and declared that interest rates would remain stable at 4.25 to 4.50 percent, the cryptocurrency market was a flurry of activity. According to market observers, this has strengthened the favorable sentiment surrounding cryptocurrencies.
Bitcoin, the leading cryptocurrency, recovered the $99,400 level after the news, coming within 600 points of the $100,000 threshold. But it has since retreated a little, and as 11:17 AM on Thursday, May 8, it was trading at about $98,863.98, up 2.63 percent.
$50 billion was traded in the world’s most popular cryptocurrency in a 24-hour period. With a market valuation of $1.96 trillion, Bitcoin has the most market capitalization of any cryptocurrency. According to CoinMarketCap data, the recent 24-hour trading range for Bitcoin was $95,829.33 to $99,406.51.
Positive momentum might propel Bitcoin reaches $100K
According to Piyush Walke, a derivatives research analyst at Delta Exchange, investors are increasingly considering Bitcoin as a store of value rather than just a speculative asset, therefore this bullish momentum is expected to continue. The $100,000 mark, which Walke thinks also acts as a significant psychological barrier and can cause some slight selling pressure, is the next crucial level to keep an eye on.
“The Federal Reserve’s choice to maintain a strict monetary policy stance and focus on containing inflation is indicated by its refusal to lower interest rates. The statement was well received by Bitcoin, which rose by about 2,000 points.
In the meantime, cumulative inflows into Bitcoin ETFs have risen to a record high of $40.62 billion, indicating a significant increase in institutional participation and confirming Bitcoin’s status as a popular investment vehicle, according to Walke.
Similar opinions were expressed by Edul Patel, co-founder and CEO of Mudrex, who stated that the US Fed’s choice to maintain benchmark interest rates at their current level while recognizing the country’s ongoing economic strength has strengthened market sentiment.
A favorable macroenvironment for cryptocurrencies has been established by China’s actions to increase liquidity and the Fed’s return to quantitative easing, which included more than $34 billion in bond purchases this week. “Any fresh wave of liquidity could reduce real yields, devalue fiat, and potentially drive further inflows into crypto assets,” Patel stated.
According to Patel, a move above $99,300 would lead to a surge in short liquidations, which would support Bitcoin’s ascent above the $100,000 threshold.
Altcoins benefit from positive market sentiment
Other cryptocurrency sentiments were also positive. At $1,899.90, Ethereum (ETH), the second-largest cryptocurrency in the world by market value, was up 3.96 percent. Over the past day, it has fluctuated between $1,788.69 and $1,913.43. Ethereum is currently down over 61% from its peak of $4,891.70 on 16/2021.
With gains of 3.31 percent, Solana (SOL) was leading the pack among other well-known cryptocurrencies. Cardano (ADA) was next with gains of 3.81 percent, Ripple (XRP) with gains of 2.05 percent, and Binance Coin (BNB) with gains of 0.94 percent. Tether, a stablecoin tethered to the US dollar, was up 0.01 percent at $1.On CoinMarketCap, the most popular cryptocurrency coins were Bitcoin (BTC), Mog Coin (MOG), Ethereum (ETH), EOS (EOS), Solana (SOL), and Bitcoin Cash (BCH).
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