Crypto Market Soars Post-Fed: DeFi and Smart Contracts StarsAllgemein
• Altcoins from the DeFi and smart contracts sector outperformed bitcoin on Thursday after Federal Reserve Chair Jerome Powell offered unexpectedly less hawkish remarks.
• Uniswap’s UNI token and Avalanche’s AVAX token were recently up about 4.5% and 3.4%; ether rose 3% at one point Thursday.
• Bitcoin (BTC) was recently trading above $23,560, roughly flat over the past 24 hours, albeit slightly in the red.
Post-Fed Rally Continues
Crypto markets have been rallying following moderate comments by Federal Reserve chairman Jerome Powell regarding interest rate hikes. Altcoins from the decentralized finance (DeFi) and smart contract platform sectors have been leading the market surge; Uniswap’s UNI token and Avalanche’s AVAX token were recently up about 4.5% and 3.4%, respectively, while Ethereum (ETH) rose 3%.
Bitcoin (BTC) has also seen positive growth as it traded above $23,560 with a slight dip at late Thursday trading time. The CoinDesk Market Index which measures crypto market performance was also flat for most of the day before dipping late Thursday as well. BTC had been changing hands in a narrow range between $23700 – $24200 since the Fed announcement before dipping late Thursday as well.
The S&P 500 is currently closing in on a golden cross formation which historically has preceded big rallies in Bitcoin prices however not all golden crosses lead to a big rally so caution is advised when investing based off this pattern alone.
Looking ahead crypto markets are expected to remain volatile where investors will be keenly watching future Fed announcements for further cues on how monetary policy will shape crypto markets going forward as well as how influential will a potential golden cross be on future BTC prices increases or decreases.
In conclusion crypto markets have been performing positively following less hawkish remarks by Federal Reserve Chairman Jerome Powell with alt coins from DeFi and smart contract platforms leading the rally alongside Ethereum (ETH). While Bitcoin (BTC) performed positively albeit with some volatility its future outlook remains uncertain pending further announcements from US Central Bank which could influence both BTC prices and overall crypto markets