Crypto Market Surges as Fed Hints at Interest Rate Pause
- The global crypto market cap surged by $110 billion.
- Fed Chair suggests potential interest rate pause.
- BTC and ETH lead market gains.
Over the past 24 hours, the global crypto market cap surged by $110 billion, fueled by Federal Reserve remarks from Chair Jerome Powell suggesting a pause in U.S. interest rate hikes.
The surge signifies growing investor optimism and favorable macro conditions, partly due to expected shifts in monetary policy, boosting major cryptocurrencies like Bitcoin BTC -1.61% and Ethereum ETH -3.16% .
The global crypto market capitalization increased significantly, adding over $110 billion in 24 hours. This surge followed comments from Federal Reserve Chair Jerome Powell, suggesting a pause in U.S. interest rate hikes. Jerome Powell, Chair of the Federal Reserve, noted, “A potential pause in U.S. interest rate hikes has been discussed, which has significant implications for risk-on asset classes like crypto.” Crypto Market Rises by $110B as Fed Hints at Rate Pause.
This change involved major crypto exchanges reporting a 25% increase in trading volumes. Financial sentiment shifted towards risk-on assets like Bitcoin and Ethereum, influenced by the possibility of monetary policy easing.
The immediate effect was noticeable across all major exchanges, with Binance and Coinbase experiencing higher trading activity. The anticipation of dovish remarks supported a broader market rally, especially among large-cap cryptocurrencies.
The financial market acknowledged potential macro influences, as Bitcoin regained significant value alongside Ethereum. Analysts noted that BTC reached a weekly high, indicating positive investor outlook.
Statements from prominent industry figures remain absent, but available analysis emphasizes macro impacts on the crypto market. Investor sentiment remained optimistic, with expectations of ongoing favorable conditions.
Previous historical trends showcase how similar announcements by the Fed have driven crypto rallies. This movement indicates a possible increase in institutional capital rotation into crypto assets, pending consistent macroeconomic signals.
