- At the FOMC meeting, the US central bank said it would slow its rate hikes, proving upward momentum for risky assets like crypto.
- Ethereum leads the gains, with the price of ETH surging above $1,750 and address activity hitting a new all-time high.
Bitcoin and the broader cryptocurrency market rejoiced greatly after the Fed’s announcement earlier this week. At press time, Bitcoin (BTC) is trading up 4.84% at a price of $24,000 with a market cap of $458 billion.
This is the first time since mid-June that BTC has traded above the $24,000 levels again. Earlier this week, the US Federal Reserve announced a 75 basis point rate hike to combat soaring inflation. Wall Street cheered as it was right on the highly anticipated lines.
On Thursday, July 28, the United States announced its second consecutive contraction in GDP of 0.9%. GDP data showed that the United States was technically in a recession. Interestingly, after yesterday’s GDP news, all Bitcoin, Gold, Silver and the S&P 500 rose. As on-chain data provider Santiment reports:
As trading markets continue to defy crowd expectations, #Bitcoin the #SP500, #gold& #silver are all standing. This comes after news emerged that the US had a -0.9% #GDP in the second quarter of 2022, which technically implies that there is now an official #recession.
For Bitcoin, one of the crucial levels on the upside is $25,000. Another on-chain data provider Material Indicators noted:
If this rally can get past $25,000, then $28,000 is concentrating very quickly. If you go long, remember to take profits along the way.
Ethereum and altcoins make big gains
When the Federal Reserve announced the rate hike, the US central bank also indicated that it would soon ease its quantitative tightening measures. This has given the broader crypto market optimism that an end to the crunch is in sight. This also sparked a strong rally in other risky assets, thus lifting altcoins.
Ethereum (ETH) led the gains in the crypto space with ETH price breaking above the $1750 levels. The recent ETH price rally also comes against the backdrop of a surge in Ethereum network address activity that reached over one million active addresses in a single day for the first time ever. Of the history.
The rest of the top ten altcoins are showing gains of between 5-10%. Ethereum competitor Solana (SOL) gained over 9% as it broke above the $40 levels.
Cardano gained more than 7% as it broke above the 50 cent mark. Among other altcoin blockchain networks, Cardano has seen the highest development activity so far in 2022 in terms of code pushes, issue interactions, and more.
Similarly, Ethereum Layer-2 scalability solution Polygon (MATIC) gained 10% as it approached $1.0. MATIC has been one of the best performing cryptocurrencies currently in the market, gaining nearly 100% in the past month from June lows.