The Federal Reserve’s smaller interest rate hike could have positively influenced the crypto market, which rallied with bullish signs.
As most altcoins registered gains, the crypto market witnessed a sea of green on February 2. This was likely due to a smaller interest rate hike announced by the Federal Reserve in the US. BTC rose by over 3% to touch $24000 for a while before retreating below the level. ETH also marched past the $1600 mark.
Volumes of Bitcoin rose by more than 37% to stand at around $30 billion, with analysts expecting it to touch $25000 at the present rate. ETH also formed resistance at $1700, while altcoins like Polygon, Solana, Avalanche, and Cardano were all trading at higher levels. The total market capitalization of the crypto market rose by more than 3%.
The Federal slightly softened its stance towards interest rate hikes while maintaining a cautious stance towards inflation. The Federal Open Market Committee (FOMC) stated, “Inflation has eased somewhat but remains elevated,” indicating that more steps are required at the macroeconomic level to tame global inflation.
BTC/USD 1 month price chart
Bitcoin is currently trading at around $23800 on January 31, 2023, with BTC/USD up by 0.46% in the previous 24 hours, with most other cryptos trading with upward trends in the last day. BTC/USD is trading higher above its 20-day EMA (21,157.11).