Following the Fed rate hike, Bitcoin discussions surged, and the BTC price neared $30,000 within hours.
On July 26, the US Federal Reserve raised interest rates by 25 basis points, as expected. This resulted in Bitcoin and the broader crypto market turning bullish, with BTC getting closer to $30,000.
At the time of press, BTC is trading 0.7% higher at $29,464, with a market cap of $572 billion. Top altcoins like ETH, XRP, and BNB also experienced gains, rising by 1.5%. Solana (SOL) showed the highest increase in the top ten crypto-list with over 7% gains, while Cardano (ADA) and Polygon (MATIC) went up by over 3% each.
Courtesy: Santiment
The recent rate hike brought US interest rates to a 22-year high. On-chain data provider Santiment explains that the Federal Open Market Committee (FOMC) raised rates to their highest level since 2001, with another 25 bps increase. The market’s response could depend on social reactions, and early indications point towards a “sell the rumor, buy the news” approach, with positive price movements anticipated.
With the Fed’s rate hike announcement, Bitcoin once again grabbed the spotlight from altcoins. As the FOMC raised rates and Bitcoin approached $30k, there was a significant increase in discussions about Bitcoin compared to other top 100 assets. Santiment reports that this heightened social dominance usually indicates fear, which could increase the chances of a price increase.
Courtesy: Santiment
Another bullish indicator is the Bitcoin supply at exchanges dropping to a 5-year low. Despite current selling pressure, many Bitcoin holders have been moving their coins into self-custody.
Fed Chairman Jerome Powell hinted at another potential rate hike in September 2023. Consequently, investors may shift towards Bitcoin instead of altcoins over the next two months.
Important: 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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