Crypto advanced as markets await Fed decision

Crypto advanced with renewed optimism after days of bearish signs, with the Federal Reserve expected to pause interest rate hikes this month.

The crypto market presented a much better picture in the last 24 hours, with Bitcoin nearing the $26000 mark after a couple of days of trading in a flat range. The main reason could be the hype around the Federal Reserve’s probable decision to pause the interest rate hike beginning this month.

Though the decision hasn’t been announced yet, macroeconomic conditions point towards all likelihood of a pause. As a result, crypto advanced ahead due to the positive sentiment brewing in the market. No hikes in the interest rates this month could inject fresh liquidity into the crypto markets that have been lacking for a few weeks now.

Bitcoin has been trading in the same broad trajectory for weeks now, and a positive trigger could push the entire crypto market toward a new rally. Although regulatory issues for crypto persist in the US, the markets seem to have shifted course to the Fed for now.

Crypto tokens saw a mixed result, with Polygon, XRP, Cardano, and Bitcoin gaining, while those like Shiba Inu and ETH, Solana, and BNB witnessed losses.

BTC/USD 1D price chart

Bitcoin is currently trading at around $25900 on June 12, 2023, with BTC/USD up by around 0.6% in the previous 24 hours. BTC/USD is trading below its 20-day EMA (26,812.33) as BTC’s 24-hour volume stayed over $13.1 billion. Bitcoin has seen around 56.36% returns on a year-to-date basis.

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