How the US Federal Reserve Boosted Cryptocurrencies

Everything seems to indicate that after the sharp drop in prices on the cryptocurrency market, the sunny days are back. Indeed, digital assets are recovering if we take into account the latest recorded data. Even the US Federal Reserve’s desire to raise policy rates did not end up having the disastrous effects expected by experts.

A win-win decision for the market

Between June 18 and June 19, cryptocurrencies rose sharply after the Federal Open Market Committee (FOMC) meeting. However, a few hours earlier, the US central bank had indicated it would carry out an increase in market rates. This increase is expected to be the most aggressive in 28 years and its aim is to curb inflation which is soaring.

It should be noted that no one expected such a decision from the Fed. Everyone expected the opposite behavior, given the aggressive stance it has always taken towards the digital asset market. This time, it is the decision was, however, beneficial since he breathed a wind of growth for most cryptocurrencies.

An increase for several cryptocurrencies

The data shows that the total market capitalization of digital assets is increase of about 1.8%. Earlier this week it was low: it had dropped below the $ 1 trillion mark. Meanwhile, bitcoin (BTC) has grown by 2.01% and is currently trading at $ 21,367.93 according to CoinMarketCap.

Other cryptocurrencies have also been able to increase their value. For example, the ether (ETH) has jumped 5.12% in a day. Its value is around $ 1,136.10. As for solana (SOL) and cardano (ADA), they had respectively earnings of 8.14% and 7.45%. Dogecoin (DOGE) also did well as its value increased by 5.85%.

Given the evolution of the market, can we finally say that the worst is behind us? Not really ! Indeed, even if the recent losses have been offset, the market generally remains in a downtrend. Take the case of BTC. Although the cryptocurrency king has raised its price, it is still down 30.5% and ETH is down 38.2%.

The US Federal Reserve’s decision did not have the negative effect predicted by experts. On the contrary, it has stimulated the market and created a rise in value for most cryptocurrencies. That said, for now there is nothing to say that the downtrend is behind us.

Source: ZyCrypto

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