- Bitcoin price surged to the highest point this year after the Federal Reserve decision.
- The move sparked a major rally among altcoins like Near Protocol and Oasis Network.
- DeFi tokens like Uniswap and Aave also surged as demand for their ecosystems rose.
Cryptocurrency prices reacted positively to the latest Federal Reserve decision on Wednesday. Bitcoin has surged to the year-to-date high. After forming a bullish pennant pattern, there is a likelihood that it will continue soaring to the 50% Fibonacci Retracement point at $42,000.
Bitcoin’s rally triggered a surge among other altcoins. DeFi tokens like AAVE and Uniswap led the charge, soaring by over 20% in the past 24 hours. AAVE rose to $98.13 while Uniswap’s UNI surged to $4.80. These tokens are thriving because of the overall implication of the crypto rally.
In the case of Uniswap, the rally means that demand for cryptocurrencies will rise as investors attempt to follow the crowd. We have already seen in the stock market as the Coinbase stock price has jumped sharply this week.
Similarly for AAVE, as cryptocurrency prices rise, there is a likelihood that demand for its lending projects will continue. Indeed, the total value locked across many DeFi protocols has jumped.
Read more: How to buy AAVE.
The other top performers were Near Protocol and Oasis Network. Near Protocol’s NEAR token surged after the developers partnered with Nym, a leading blockchain project. The token also rose as investors prepared for next week’s NearCon Conference, which will bring together the biggest players in the ecosystem,
Oasis Network’s ROSE, Synthetix’s SNX, and Decentraland’s MANA were among the top movers in the crypto industry.
In its statement on Wednesday, the Federal Reserve decided to leave interest rates unchanged between 5.25% and 5.50%. It also left the door open for additional rate hikes if inflation remains steady above the 2.0% target.
Therefore, cryptocurrencies and stocks rallied because most analysts believe that the Fed will not hike rates again. Instead, it will leave them at the current level for a while and then start cutting in 2024. Cryptocurrencies and stocks do well when the Fed is not hiking.
There is also a high possibility that the Securities and Exchange Commission (SEC) will finally approve Bitcoin ETFs before the end of the year. A BTC ETF will lead to more inflows to cryptocurrencies as the industry becomes a real asset class.
