On Wednesday, May 4, the U.S. Federal Reserve announced an interest rate hike by 50 basis points in order to control the soaring inflation. The announcement was quite on the expected lines and the U.S. equity market as well as the crypto market rallied soon after.
The Bitcoin (BTC) price is up 5% in the last 24 hours and has moved closer to $40,000. As of press time, BTC is trading at a price of $39,902 with a market cap of $755 billion. The broader crypto market is also up by 5% adding more than $80 to investors’ wealth.
Wednesday’s breakout in Bitcoin comes along with similar breakouts seen in the S&P 500 and Gold. On-chain data provider Santiment erkläert:
"D' #Fed huet hir Beweegung wéi erwaart haut gemaach, mat enger 50 Basispunkt Zënserhéijung. Net iwwerraschend ass den Impakt verännert # knaschteg bal direkt fir #krypt, grad wéi no der Wanderung vum Mäerz. Mir hu vläicht eng aner #selltherumorbuythenews scenario”.
On the other hand, today’s breakout and candle formation show that Bitcoin has breached past the multi-week resistance. If Bitcoin manages to more past $40,000, it can make further rally to $42,000 and $45,000.
#BTC is breaking out past the multi-week resistance$ BTC # Krypto #Bitcoin pic.twitter.com/4tWWhjHWSJ
- Rekt Capital (@rektcapital) Mee 4, 2022
Gains in the Altcoin Market
As we know, Ethereum (ETH) has been closely following BTC moves this year. Thus, the world’s second-largest cryptocurrency is also up 5% and currently trading at $2,940. Terra’s LUNA and Ripple’s XRP are also up by 5% as of press time. Furthermore, ETH is giving out some bullish signals on the technical charts as well.
$ ETH - OBV ass déi lescht Woch bullish an iwwer Ënnerstëtzung bliwwen. Et waren keng Schëlder ze verkafen, nëmmen Schëlder déi Ënnerstëtzung hält. Elo gesi mir bullish Schëlder an en Ausbroch. pic.twitter.com/LPvJsLZM1Z
- IncomeSharks (@IncomeSharks) Mee 5, 2022
Some of the strongest movers in the top ten crypto-list are Solana (SOL), Cardano (ADA), and Avalanche (AVAX). The Solana price is up by 10% and is currently trading around $95.
Cardano (ADA) and Avalanche (AVAX) have given a strong breakout each gaining more than 13%. While it remains to be seen whether this is a real trend reversal or just a momentary breakout for now.
Dee presentéierten Inhalt kann d'perséinlech Meenung vum Autor enthalen an ass ënner Zoustand vum Maart. Maacht Är Maartfuerschung ier Dir a Kryptowärungen investéiert. Den Autor oder d'Publikatioun huet keng Verantwortung fir Äre perséinleche finanzielle Verloscht.
Source: https://coingape.com/sell-the-rumor-buy-the-news-bitcoin-gives-5-upside-after-fed-meeting/