The cryptocurrency market witnessed a modest increase on Thursday evening, primarily driven by the Federal Reserve’s (Fed) indication of possible interest rate reductions in the coming year and the positive sentiment surrounding the Bitcoin ETF.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Bitcoin BTC/USD | +0.03% | $42,854 |
| Ethereum ETH/USD | +1.64% | $2,290 |
| Dogecoin DOGE/USD | +1.79% | $0.098 |
What Happened: The December Federal Open Market Committee (FOMC) meeting proved to be highly favorable for the markets. Risk assets, including cryptocurrencies, experienced a surge as the central bank displayed a more accommodative approach towards monetary policy.
In other news, JPMorgan anticipates that ETH will outperform Bitcoin and other cryptocurrencies. This expectation is based on an upcoming upgrade that will enhance the scalability of the Ethereum blockchain.
Additionally, JPMorgan analysts expressed skepticism regarding the potential impact of the SEC’s decision on approving a spot BTC ETF. They believe that any potential gains resulting from this decision may be limited due to a phenomenon referred to as the “high chance of buy-the-rumor/sell-the-fact effect.”
Top Gainer (24 Hour)
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EDT) |
| BONK | +59.36% | $0.000021 |
| Helium | +27.84% | $6.74 |
| Woo | +18.84% | $0.37 |
The global crypto market cap has reached $1.61 trillion, marking a 4.49% increase in the last 24 hours.
The S&P 500 index displayed a modest rise of 0.26%, reaching a closing value of 4,719.55. Similarly, the Nasdaq Composite experienced a slight uptick of 0.19%, concluding the day at 14,761.56 points.
See More: Best Cryptocurrency Scanners
Analyst Notes: Cryptocurrency analyst Michael Van de Poppe has indicated that Ethereum has made a notable support and resistance shift at the $2,125 level. He believes that "even if it corrects to $1,900, the trend remains up and the next area for resistance is found at $3,400-3,800 in Q1 2024."
Crypto analyst Ali stated that there is a significant amount of capital flowing into Bitcoin and Ethereum today, reaching over $19.7 billion. "This is around the same capital inflow we saw back in December 2020 before $BTC surged from $18,000 to $65,000!"
According to Santiment, a crypto analytics firm, extreme interest in #altcoins often indicate greed among traders. " As many wondered when the local top would finally arrive as #crypto markets surged from mid-October to early December, a reliable signal would be the sentiment."
Photo by Fernando Cortes on Shutterstock
Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions From Twitter Users
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