Blue chip cryptocurrencies have experienced volatility on Wednesday in response to the US Federal Reserve’s latest monetary policy decision. The Fed has chosen to keep interest rates unchanged at 5.25-5.5%, while indicating a possibility of future rate hikes if necessary.
Bitcoin (BTC) briefly exceeded the $35,000 level earlier today but is currently trading just above $34,500 within recent intra-day ranges. On the other hand, Ether (ETH) has been fluctuating within a $50 range around $1,800, also within recent ranges. However, it is worth noting that Ether has managed to maintain its position above the 200-day moving average (200DMA) at $1,780.
The cryptocurrency market now eagerly awaits further comments from Fed Chairman Jerome Powell, as they seek more insight into the future of interest rates in the United States. Despite weak US manufacturing PMI survey data causing a dip in US yields, investors are still confident that interest rates will remain high due to the strong performance of the US economy.
Despite these macro trends, blue-chip cryptocurrencies have been performing well recently. This can be attributed to optimistic sentiments regarding crypto-specific narratives, primarily surrounding adoption and the arrival of a new bull market. For example, Bitcoin experienced a significant surge of over 28.5% in October, thanks to growing hopes for institutional adoption and the potential approval of spot Bitcoin ETFs in the US. These positive themes may continue to support the crypto market in the near future, even in an unfavorable macro backdrop.
