Bitcoin, Ethereum, XRP Surge as Crypto Shorts Suffer Before Fed Decision
Cryptocurrency markets are experiencing a significant surge, with Bitcoin and several altcoins reaching new heights ahead of the Federal Reserve’s upcoming decision on interest rates. Traders are eagerly anticipating a third interest rate cut, contributing to a wave of activity in crypto investments.
Bitcoin Achieves New Heights
On Tuesday, Bitcoin’s price soared above $94,400, reaching its highest level since mid-November according to CoinGecko. This surge marks a notable increase of 5% over the last 24 hours and a 4% rise this week. Prior to the spike, Bitcoin’s price had stabilized around the $90,000 range.
Performance of Major Altcoins
- Ethereum: Increased by 8% to $3,359, with a weekly gain of over 16%
- XRP: Rose 5% to $2.17
- Solana: Climbed 6% to $144
- Dogecoin: Also saw a 6% increase, reaching $0.15
The rise of these altcoins has been even more pronounced than Bitcoin’s gains, showcasing a robust recovery in the market.
Liquidations Hit Short Positions
In a notable reversal of trends, most liquidations on Tuesday impacted short positions. Over $376 million in positions were liquidated, with shorts accounting for $297 million. Bitcoin led the charge, with $153 million in liquidated shorts, followed closely by Ethereum, which saw $110 million.
Factors Behind the Surge
The ongoing Federal Open Market Committee (FOMC) meeting is critical in shaping market conditions. Expectations are high for another 25 basis points rate cut, which nearly 90% of interest rate traders anticipate based on CME FedWatch data. Lower interest rates often bolster the performance of riskier assets, including cryptocurrencies.
This surge in crypto prices may also be influenced by speculation, with traders potentially planning to sell following official announcements. Within the prediction markets on Myriad, users estimate there’s an 80% likelihood Bitcoin will reach $100,000 before dropping to $69,000, reflecting increased confidence in its price trajectory.
As the Federal Reserve’s meeting concludes, market participants will be closely monitoring the decisions announced, which may have lasting impacts on the crypto landscape.
