There has been some major drop in the price of bitcoin following the US Federal Reserve’s announcement about a hike in interest rates. The avalanche marked the most significant price increase from altcoins, with a notable increase of around 10%.
Bitcoin’s Fed-Propelled Roller-Coaster
After several days of relatively calm behavior around $39,000, bitcoin has been reminded of its volatility over the past 48 hours. As reported yesterday, the asset surged from nearly $3,000 to daily highs of over $41,500, before suddenly and quickly dropping back to $39,000.
However, the bulls returned to the scene and pushed BTC above $40,000. The cryptocurrency remained north of that level for most of the day, but then came the latest Federal Reserve meeting.
BTC went downhill and fell by more than $1,000 within minutes, as Fed Chairman Jerome Powell announced plans to raise interest rates by 25 basis points immediately. Nevertheless, the asset bounced back sharply and briefly crossed $41,000.
So far, bitcoin has lost some traction and is shy of that last price line, but it’s still up 1% since yesterday, and has a market cap of close to $800 billion.
AVAX leads with 10% growth
Alternative coins went through similar price movements yesterday, but most are still in the green on the daily scale.
Ethereum is up 3% and trading above $2,700. The second largest cryptocurrency fell below $2,500 earlier this week.
Binance Coin, Ripple, Dogecoin, Shiba Inu and CRO have posted modest gains. Solana and Cardano gained nearly 4% to $87 and $0.85, respectively.
Avalanche is the biggest gainer from large-cap stocks with a rise of 9.5%. As a result, AVAX has moved closer to $80.
Sandbox is another impressive performer (7.5%) following the notable partnership with HSBC.
The crypto market cap has risen by over $110 billion in two days and is now above $1.8 trillion.
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