Federal Reserve Decision Market Reaction
The Federal Reserve announced its third interest rate decision of 2024 on Wednesday, June 12th Which had an impact on the cryptocurrency market.
However the Fed maintained its federal funds rate at 5.25%-5.50%. Chairman Jerome Powell noted a slight decline in inflation and projected minimal rate cuts, including a potential 25 basis point reduction by end-2024.
According to the report, inflation has remained stable and the economy remains strong. Signalling a bullish and expanding economy for the USA.
Furthermore, the Decision by the FED has fuelled the question What will the price of Bitcoin hit before the end of 2024?
Therefore the Fed’s steady policy and minimal projected rate cuts this year will play a crucial role in shaping the market’s reaction. Stay tuned for more updates on the crypto market.
Crypto Market Overview post FOMC Rate Decision.
The FED`s decision to hold interest rates steady had a significant impact on the cryptocurrency market. Despite a slight rise in inflation, the Fed’s cautious optimism boosted the overall market sentiment.
Generally, Bitcoin remaining stable at around $67,500, while Ethereum continues to trade above $3,500. The total market capitalization saw a 0.30% increase, reaching $2.58 trillion.
Fear and Greed & Uncertainty In The Market.
Fear and Greed in the Crypto Market, a way to gauge the cryptocurrency market movements and whether stocks are fairly priced.
Furthermore, the theory is based on the logic that excessive fear in the market tends to drive down prices of the different assets, and too much greed tends to have the opposite effect.
In Addition, the Indicator shows a greed level in the cryptocurrency market of 70, a slight drop from 72 yesterday and 77 last week. This indicates that while investors are still bullish, there is some caution creeping into the market.
Top Crypto Gainers and Losers from the Rate Decision
Livepeer (LPT): +18.64%
Notcoin (NOT): +12.65%
Injective (INJ): +10.21%
Toncoin (TON): +8.42%
Fetch.ai (FET): +7.82%
Market Activity
In totality the total crypto market volume over the past 24 hours was $64.04 billion, reflecting a 20% increase. Whereas DeFi volume stands at $5.87 billion, representing 9.17% of the total market volume.
Stablecoin volumes dominate at the crypto space with $57.9 billion, accounting for 90.41% of the market volume.
Bitcoin’s dominance a significant system of measurement in the cryptocurrency market that represents the proportion of Bitcoin’s market capitalization in comparison to the combined market cap of all cryptocurrencies saw a slight decreased by 0.50%, now at 55.61%.
I.e. if bitcoins dominance is down there is a significant interest in altcoins rather than more established crypto currencies increasing the risk appetite of investors and the reverse is true
Conclusion
The recent FOMC decision has created a mixed reaction in the crypto market. While major cryptocurrencies like Bitcoin and Ethereum face volatility, several altcoins have shown significant gains.
The market remains cautiously optimistic, driven by strategic moves from major players like Circle and MetaMask.
