Dovish Fed Commentary Pushes Bitcoin (BTC) Above $67,000, Altcoins Rejoice
Highlights
- All three US indices on Wall Street hit all-time highs after dovish Fed commentary.
- The Bitcoin price has bounced back strong gaining 9% in hours after FOMC meeting concluded.
- Spot demand and stable funding rates hint at the likelihood of price surge ahead.
The world’s largest cryptocurrency Bitcoin (BTC) has registered a strong bounce back above $67,000 after the dovish Fed commentary on Wednesday, March 20. As of press time, the Bitcoin price is up 8.12% with its market cap soaring past $1.3 trillion once again. On the other hand, altcoins too are rejoicing after a strong bounce back on Wall Street on Wednesday.
Federal Reserve Turns Dovish, Keeps Interest Rates Unchanged
The Federal Reserve (Fed) has opted to maintain interest rates at their current levels, keeping the benchmark overnight interest rate within the range of 5.25% to 5.50%. While the rates remain unchanged, Fed officials anticipate a decrease in interest rates by three-quarters of a percentage point by the end of this year. This forecast reflects their dedication to achieving the U.S. central bank’s 2% inflation target.
The Federal Open Market Committee (FOMC) exhibited a clear dovish stance, indicating a bullish outlook. During Powell’s press conference, he expressed minimal concern regarding the elevated inflation figures observed in January and February, thus emphasizing instead the weaknesses evident in the labor market.
Continued strength in the labor market wouldn’t be a reason to hold off lowering interest rates, said Federal Reserve Chair Jerome Powell, reported CNBC.
All three indices on Wall Street – Dow Jones, the S&P 500, and the Nasdaq – touched record highs on Wednesday, gaining 1% each. Trader sentiment is optimistic as the Federal Reserve’s decision favors equities and strengthens the correlation between cryptocurrency and the S&P 500.
Crypto Market Rebounds Strongly, Bitcoin Shoots Past $67,000
In a dramatic turn of events, the cryptocurrency market witnessed a robust rebound, with Bitcoin (BTC) surging back above the $67,000 mark and Ethereum (ETH) reclaiming the $3,500 level. The resurgence appears to be predominantly driven by spot demand, as reflected in stable funding rates. Analysts from QCP Capital anticipate confirmation of this trend through forthcoming BTC spot ETF flow data.
Despite recent headlines regarding regulatory concerns, particularly the SEC’s deliberation on classifying ETH as a security, apprehensions surrounding Ethereum have notably eased. This resilience further underscores the market’s confidence amidst regulatory uncertainties.
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