The crypto market saw an upsurge in prices following the United States Federal Reserve Open Market Committee (FOMC) decision to maintain interest rate steady in the 5.25% to 5.50% range. Adding on to the positive momentum from the last week of October 2023, Bitcoin BTC price and Solana SOL price were among the highest gainers after Fed Chair Jerome Powell speech after the FOMC meet.
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BTC, SOL Prices Stand Out
Continuing the bullish momentum, Solana stood out with highest daily gains among the top 10 cryptocurrencies by market size. This comes amid the bankruptcy proceedings around crypto exchange FTX, which is closely associated in terms of investment from the Solana Foundation. Earlier, CoinGape reported that the exchange secured the court approval to sell its $3.4 billion worth of crypto holdings including Bitcoin (BTC), Solana (SOL), and Ethereum (ETH). Yet, the SOL price has been showing resilience amid the ongoing trial of Sam Bankman-Fried (SBF).
Global investment management company VanEck predicted the possibility of SOL price reaching the $3,200 mark by 2030, projecting a multiplication by 80 times from the current range.
Powell Speech: Rate Hike In December FOMC Meet?
Stating that the US economic activity expanded strongly in the third quarter of 2023, the Fed officials did not rule out the possibility of further hikes in upcoming meetings, keeping in mind the target of bringing inflation down to the 2% mark. The Bitcoin BTC price jumped sharply with the Fed keeping rates steady on expected lines. Although Powell warned about not ruling out yet another rate hike at the next FOMC meeting in December, the crypto and stock markets saw impressive gains.
While the US Fed’s decision to keep interest rates unchanged came on expected lines, the Powell speech could ignite fresh concerns around the return of the central bank’s monetary policy tightening stance. Earlier, the U.S. Bureau of Economic Analysis reported that the personal consumption expenditures (PCE) price index for September increased 0.4 percent, compared to August 2023.
Meanwhile, respondents on the CME FedWatch Tool showed increased probability of a rate hike in the December 2023 FOMC meeting. Compared to a week ago, the Tool shows a 2% rise in probability of a rate hike to 5.50% to 5.75% range, with room for further rise in fears of a hike in the lead up to the meeting on December 12-13, 2023.
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