Bitcoin and cryptos rally in relief after Fed´s less hawkish stance
Sell the rumor, buy the news. The cryptocurrency market is tinged green on Thursday, leaving rises of between 5% and 10% in 24 hours, after the US Federal Reserve (Fed) announced that its pace of rate hikes and monetary tightening will remain within the parameters discounted by the market. After the central bank ruled out the possibility of rate hikes greater than 0.5% and guidance to markets did not use such 'hawkish' language as some anticipated, buying has come in on Wall Street and cryptoassets, so hand-in-hand in recent months.
"Most importantly, uncertainty, which was an important precondition for stocks to move higher, has been significantly reduced," stated Stephen Innes, analyst at SPI Asset Management. "Investors seem to be in agreement with a steady 50 and 50 (basis point) cadence for the next two FOMC (central bank Open Market Committee) meetings, after Powell rejected the possibility of a 75 basis point hike," he added.
"As expected, the impact has been bullish almost immediately for 'cryptos,' just as it was after the March hike. We may have another sell 'on the rumor buy on the news' scenario," Santiment's experts pointed out. Bitcoin´s price (BTC) has risen 5% in the last 24 hours and has approached $40,000.
On the other hand, Thursday's breakout and candlestick formation show that the digital currency has broken through multi-week resistance. If Bitcoin manages to break above $40,000, it can continue to climb to $42,000 and $45,000.
ALTCOINS GAINS
As for the other digital tokens, Ethereum (ETH) has closely followed the movements of BTC this year. Thus, the world's second-largest cryptocurrency is also up 5% and currently trades at $2,940, with $3,000 just a stone's throw away. Terra's LUNA and Ripple's XRP are also up 5%. ETH is also giving some bullish signals on the technical charts.
Some of the strongest moves in the top ten cryptocurrency list have been led by Solanna (SOL), Cardano (ADA) and Avalanche (AVAX). Solanna's share price is up 10% and currently exchanges hands at around $95.
Cardano (ADA) and Avalanche (AVAX) have jumped sharply, each gaining more than 13%. Although it remains to be seen if this is a true trend reversal or just a momentary break for now.