Following the Federal Reserve’s decision to maintain interest rates at 4.25%-4.5%, Bitcoin and altcoins gained 3% each triggering hopes of February rally.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
2 mins read
Bitcoin BTC $93 352 24h volatility: 1.9% Market cap: $1.86 T Vol. 24h: $48.59 B and altcoins have shown hope following the US Fed’s decision to keep interest rates unchanged on Wednesday. Bitcoin price is up 3.10% to $105,000 while top altcoins like Ethereum ETH $1 789 24h volatility: 5.1% Market cap: $216.35 B Vol. 24h: $25.25 B , Solana SOL $149.5 24h volatility: 3.2% Market cap: $77.45 B Vol. 24h: $6.21 B , Cardano ADA $0.70 24h volatility: 6.2% Market cap: $25.17 B Vol. 24h: $1.05 B , and Chainlink LINK $14.86 24h volatility: 7.2% Market cap: $9.49 B Vol. 24h: $670.37 M are up by 3-7%.
On January 29, the Federal Open Market Committee (FOMC) maintained the interest rate at 4.25% to 4.5%, following three consecutive rate cuts. This decision marks a shift from last year’s aggressive measures to tackle inflation. The Federal Reserve pointed to stable economic growth, a robust labor market, and ongoing inflation pressures as key factors behind the move.
Bitcoin and altcoins have shown strength despite the Fed’s decision to continue with quantitative tightening. Although rate cuts would have been a catalyst for an altcoin rally, the current decision hasn’t impacted crypto much.
However, the journey for altcoins is not going to be a straightforward path to the upside. Crypto analyst Benjamin Cowen predicts a potential spike in Bitcoin dominance above 60% in the near future.
However, he cautions that this level may not be sustained for long before dipping back below. Cowen also suggests that for altcoin-to-Bitcoin pairs to experience a relief bounce, Bitcoin dominance might first need to surpass the 60% threshold. Another crypto analyst Crypto Rover also suggested that the rising BTC dominance for now is just a dead-cat bounce.
Source: Crypto Rover
Popular crypto analyst Captain Faibik has weighed in on the recent performance of altcoins, describing the ongoing correction phase since early December as a necessary step for market consolidation. According to the analyst, this correction is nearing its end, setting the stage for a potential bullish wave.
Captain Faibik also noted that this could be the final opportunity for investors before the next surge. “In December, you only saw the trailer, but the movie is yet to come,” he said, hinting at a promising outlook for February.
Source: Captain Faibik
The analyst pointed to a potential Pennant Breakout as a key catalyst for altcoins to rally next month. He further emphasized that such a move could mark a turning point for the broader crypto market.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
