On Wednesday, May 4, the U.S. Federal Reserve announced an interest rate hike by 50 basis points in order to control the soaring inflation. The announcement was quite on the expected lines and the U.S. equity market as well as the crypto market rallied soon after.
The Bitcoin (BTC) price is up 5% in the last 24 hours and has moved closer to $40,000. As of press time, BTC is trading at a price of $39,902 with a market cap of $755 billion. The broader crypto market is also up by 5% adding more than $80 to investors’ wealth.
Wednesday’s breakout in Bitcoin comes along with similar breakouts seen in the S&P 500 and Gold. On-chain data provider Santiment explains:
“The #Fed made their move as expected today, with a 50 basis point interest rate rise. Unsurprisingly, the impact shifted #bullish almost immediately for #crypto, just as it did after the March hike. We may have another #selltherumorbuythenews scenario”.
On the other hand, today’s breakout and candle formation show that Bitcoin has breached past the multi-week resistance. If Bitcoin manages to more past $40,000, it can make further rally to $42,000 and $45,000.
— Rekt Capital (@rektcapital) May 4, 2022
Gains in the Altcoin Market
As we know, Ethereum (ETH) has been closely following BTC moves this year. Thus, the world’s second-largest cryptocurrency is also up 5% and currently trading at $2,940. Terra’s LUNA and Ripple’s XRP are also up by 5% as of press time. Furthermore, ETH is giving out some bullish signals on the technical charts as well.
$ETH – OBV has stayed bullish and above support the past week. There weren’t any signs to sell, only signs that support was holding. Now we are seeing bullish signs and a breakout. pic.twitter.com/LPvJsLZM1Z
— IncomeSharks (@IncomeSharks) May 5, 2022
Some of the strongest movers in the top ten crypto-list are Solana (SOL), Cardano (ADA), and Avalanche (AVAX). The Solana price is up by 10% and is currently trading around $95.
Cardano (ADA) and Avalanche (AVAX) have given a strong breakout each gaining more than 13%. While it remains to be seen whether this is a real trend reversal or just a momentary breakout for now.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.