Crypto Crash Or Bull Run? FED Hikes Interest Rates Again
On Wednesday, July 26, the US Federal Reserve announced a 25 basis points rate hike on the expected lines. Soon after, Bitcoin and the broader crypto market turned green with the BTC price moving closer to $30,000.
As of press time, BTC is trading 0.7% up at a price of $29,464 with a market cap of $572 billion. On the other hand, all of the top altcoins have also been in the green. Ether (ETH), XRP, and Binance Coin (BNB) are up by 1.5%. Solana (SOL) remains the biggest gainer in the top ten crypto-list with over 7% gains. Cardano (ADA) and Polygon (MATIC) are up by over 3% each.
With the recent rate hike, the US Interest rates have touched a new 22-year high. On-chain data provider Santiment explains: the Federal Open Market Committee (FOMC) has recently raised US rates to their highest level since 2001, with another 25 bps increase. How the crypto markets will respond could depend on social reactions. Early signs suggest a “sell the rumor, buy the news” approach, with positive price movements anticipated.
Bitcoin Grabs Attention Amid Fed Rate Hike
As the Fed announces a rate hike, Bitcoin once again takes away the limelight from altcoins. After the Federal Open Market Committee (FOMC) raised rates and Bitcoin approached $30k, there has been a significant increase in discussions about Bitcoin compared to other top 100 assets. This heightened social dominance usually indicates fear, which could raise the chances of a price increase, reports Santiment.
Another major bullish indicator is that the Bitcoin supply at the exchanges has dropped to a 5-year low . Despite the current selling pressure, a lot of Bitcoin holders have been moving their coins into self-custody.
Additionally, Fed Chairman Jerome Powell also hinted at another possible rate hike in the month of September 2023. Thus, this can lead to investors moving towards Bitcoin instead of altcoins over the next two months.
Play 10,000+ Casino Games at BC Game with Ease
- Instant Deposits And Withdrawals
- Crypto Casino And Sports Betting
- Exclusive Bonuses And Rewards
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
- Arizona Spent Months Placing $1 Bets on Kalshi – Now It’s Filing Criminal Charges
- US-Iran War: Oil Prices Fall Despite Iran’s Retaliation Threat After Ali Larijani Killing
- US SEC and CFTC Classify BTC, ETH, XRP, DOGE, & These Crypto as Non-Securities
- FOMC Meeting: What To Expect From The Fed Rate Decision Tomorrow
- Senator Kevin Cramer Pushes for CLARITY Act’s Markup Before Easter
- Will Dogecoin Price Break $0.15 Before March End 2026?
- Bitcoin Price Forecast: Will BTC Break $80k Ahead of Fed Decision Today?
- MSTR Stock Prediction as Strategy Makes Largest Bitcoin Purchase in 2026 and Analyst Targets BTC Price $100K
- Pi Network Price Prediction After Smart Contract and Second Migration Launch
- Pepe Coin Price Surges 20%- How High Can it Go in March?
- Is XRP Price Gearing Up For $2 Level As BTC Rebounds Above $74k?
