Crypto Market Rallies After Federal Reserve Leaves Interest Rates Unchanged
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The cryptocurrency market rallied on Wednesday after the Federal Reserve released its latest policy statement.
The Fed announced that it will keep interest rates unchanged, a widely expected decision by financial markets. Following the release, the crypto market climbed slightly, with total market capitalization rising by 1% to $3.66 trillion, according to CoinGecko.
Bitcoin (BTC) is up 3.3% to $103,800 in the past 24 hours. Meanwhile, Ethereum (ETH) gained 3% to $3,140, XRP added 2.2%, and Solana (SOL) surged 4% to $2.35.
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In the past 24 hours, total liquidations came in at $350 million, according to CoinGlass, with ETH accounting for around $24 million and BTC for $20 million.
Fed Trading Patterns
Alex Cheung, an OTC trader at Abra Prime, noted that the recent market behavior aligns with typical FOMC trading patterns. “The muted volatility and sideways price action observed over the last 48 hours is characteristic of pre-FOMC trading sessions,” he said. “We see market participants reducing exposure and awaiting clarity on monetary policy direction.”
He added that while the immediate price action remains constrained by macro uncertainty, the market's ability to keep Bitcoin above $100,000 demonstrates underlying strength.
“Traders should expect potential spikes in volatility during and immediately following the FOMC announcement, as market participants adjust positions based on the Fed's decision and, more importantly, the accompanying forward guidance,” Cheung said.
FOMC
On Wednesday, the Federal Reserve confirmed that interest rates will remain unchanged, maintaining the range established last month.
“The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid,” the FOMC statement reads. “Inflation remains somewhat elevated.”
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