Key Points
- Bitcoin (BTC) rebounds to $60,000 following the US Federal Reserve’s decision to keep interest rates unchanged.
- The crypto market shows signs of recovery, with Ethereum (ETH) and other altcoins also witnessing positive movement.
After a slump that saw its price drop below $58,000, Bitcoin (BTC) has made a significant comeback.
As of Friday morning, the cryptocurrency briefly surged past the $60,000 mark, indicating a possible path towards the critical $65,000 threshold that analysts suggest could trigger a potential rally.
Impact of Unchanged Interest Rates
The US Federal Reserve’s decision to maintain interest rates, citing inadequate progress in reducing inflation, is largely credited for this resurgence in Bitcoin’s value.
The Federal Reserve clarified on Wednesday that high inflation has been a persistent issue in recent months and that it will refrain from reducing interest rates until it is more certain that price increases are sustainably slowing towards its 2% target.
This decision has resulted in the bank’s main rate remaining at its highest level in over two decades, fluctuating between 5.25% and 5.5% since last July.
By keeping borrowing costs high, the Fed hopes to moderate economic growth and alleviate the factors contributing to price increases.
Market Reaction to Unchanged Rates
The Federal Reserve’s decision had immediate implications in the financial markets, including the crypto sector.
Market indicators show a slight recovery from recent lows, with the industry now valued at approximately $2.22 trillion, marking a 3.34% increase within the past 24 hours.
The positive market sentiment has boosted Bitcoin, which has seen its value rise by over 4%.
Despite this increase, the cryptocurrency is still more than 10% below its recent peak of $66,000 in April and has seen a significant drop of over 22% from its all-time high of $73,000 in March.
The recovery is not exclusive to Bitcoin. Other altcoins have also experienced positive trends. Ethereum (ETH) has risen by 3.35%, surpassing the $3,000 mark for the first time since Tuesday.
Similarly, Solana (SOL), Binance Coin (BNB), Dogecoin (DOGE), and Shiba Inu (SHIB) have seen gains ranging from 3.4% to 9.34% over the past day, indicating a broader market recovery across various digital assets.
