- Bitcoin price has remained above the key resistance at $27,000.
- The Federal Reserve will deliver its interest rate decision on Wednesday.
- Altcoins like SingularityNET, Fetch.ai, WAXP, and Ark have all soared.
Cryptocurrency prices have done well in the past two weeks. Bitcoin, the biggest crypto in the world, has risen above $27,000 as its hash rate jumped to the highest level on record. Other altcoins like Ark, Bluzelle, Storj, Fetch (FET), and SingularityNET (AGIX) have also roared back.
Bitcoin and other altcoin prices will be in the spotlight this week as investors receive and digest the upcoming interest rate decision by the Federal Reserve. This will be an important decision because it will set the tone for the remaining part of the year.
Economists believe that the Federal Reserve will decide to leave interest rates unchanged between 5.25% and 5.50%. It will do that because of the current state of the American economy.
There are signs that the economy is losing its steam. Data published on Tuesday showed that housing starts plunged by more than 11% in August. Also, inflation has started going up again, with the headline consumer price index (CPI) rising to 3.7% in August.
Further, there is a long traffic jam at the Panama Canal, which will definitely raise the cost of doing business. Also, workers at the big 3 American car companies – GM, Ford, and Stellantis – have gone on a major strike.
Therefore, the Fed will likely decide to pause its rate hikes. The pause will give it more time to assess the impact of the past hikes. It will then hint that it will restart hiking rates later this year.
Altcoins like SingularityNET, Fetch.ai, and Ark have risen recently in hopes that the Fed is nearing the peak of its rate hikes. They have also jumped because of the rising Bitcoin price. In most cases, altcoins tend to do well when Bitcoin is rising.
For starters, SingularityNET and Fetch are some of the best-known blockchain projects in the artificial intelligence industry. Singularity has created a decentralized platform for AI projects while Fetch is an automated agents. FET and AGIX have risen by over 5% and 3% in the past 5 days while Ark has jumped by 136% in the same period. WAXP has jumped by 9%.
