When the US Fed’s FOMC chose to keep interest rates unchanged, Bitcoin (BTC) and Solana (SOL) saw some of the biggest price increases.
The crypto market went up in value after the United States Federal Reserve Open Market Committee (FOMC) chose to keep interest rates between 5.25% and 5.50%. This added to the positive trend from the last week of October 2023. Following Fed Chair Jerome Powell’s speech after the FOMC meeting, Bitcoin (BTC) and Solana (SOL) saw some of the most significant price increases.
BTC and SOL Prices Shine
Solana is on a strong upward trend, standing out with the highest daily gains among the top 10 cryptocurrencies by market size. This surge is happening while there are bankruptcy proceedings related to the FTX crypto exchange, which has strong ties to the Solana Foundation in terms of investment.
Notably, FTX got court approval to sell its crypto assets, including Bitcoin (BTC), Solana (SOL), and Ethereum (ETH), which are worth about $3.4 billion. Despite this, SOL’s price remains resilient even as Sam Bankman-Fried (SBF) faces an ongoing trial.
A global investment management company, VanEck, believes that SOL’s price could reach $3,200 by 2030. This projection suggests an 80-fold increase from its current value.
Powell’s Speech Sparks Speculation of December Rate Hike in FOMC Meeting
Fed officials mentioned that the US economy did well in the third quarter of 2023 and didn’t rule out the chance of more interest rate hikes in upcoming meetings. They want to bring inflation down to 2%. Bitcoin (BTC) saw a significant price increase when the Fed kept rates steady, as expected. Fed Chair Powell mentioned the possibility of another rate hike in the December FOMC meeting, but this didn’t stop crypto and stock markets from making impressive gains.
While the Fed’s decision on interest rates wasn’t surprising, Powell’s speech raised concerns about the central bank’s plan to tighten monetary policy again. Recently, the US Bureau of Economic Analysis reported that the personal consumption expenditures (PCE) price index for September went up by 0.4%, compared to August 2023.
Additionally, the CME FedWatch Tool, which measures the likelihood of a rate hike, showed an increased probability of a rate hike in the December 2023 FOMC meeting. Compared to a week ago, there’s a 2% higher chance of a rate hike, bringing it to the range of 5.50% to 5.75%. People are getting more worried about a rate increase as the December 12-13, 2023 meeting approaches.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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