The cryptocurrency market is on the rise today, March 21, standing out with an impressive recovery from the declines recorded in recent days. Why is the cryptocurrency market booming today? Cryptoassets are trading in the green following the Federal Reserve's (Fed) decision on March 20 to maintain interest rates.
Last Wednesday, the Federal Reserve (Fed) chose to keep interest rates unchanged, continuing in the range of 5,25% to 5,50%, a level not seen since 2001. In a decision in line with market expectations, the United States central bank also reaffirmed its projection of making three cuts in interest rates interest throughout 2024.
The two largest cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), grew by more than 6% in the last day. At the time of publication, the Bitcoin price it was quoted at US$66.793,95, up 4.7% in the last 24 hours. Bitcoin tested the $67.000 price zone today after to trade at its lowest level in the last two weeks while trading at US$61.380 this week.
At the time of publication, the ethereum price it was quoted at US$3.528,45, up 7.6% in the last 24 hours. The recent rise is quite significant given the fall this week that saw Ethereum trade as low as US$3.090. Both cryptocurrencies fell to the level they were trading in the last week of February.
Cryptocurrency analytics platform Santiment noted the positive sentiment in the market following the Fed's interest rate decision amid the benefit in stocks and crypto correlation with the SP500. “After the FOMC announced that interest rates will remain stable for now, crypto markets have rebounded with a vengeance. Traders’ optimism is high as the Fed’s decision benefits the correlation of stocks and cryptocurrencies with the SP500.”
🇺🇸📈 After the #FOMC announced that interest rates will be standing pat for the time being, #crypto markets rebounded with a vengeance. Trader #bullishness is high as the #Fed's decision benefits #equities & # cryptocurrency's correlation with the #SP500. https://t.co/H0adpg6QbF pic.twitter.com/6pZNQUcliH
- Santiment (@santimentfeed) March 20, 2024
