Crypto Surges 5%+ After FOMC Rate Hike

Coin WorldThursday, Jan 30, 2025 4:03 pm ET

1min read

Cryptocurrency markets reacted positively to the Federal Open Market Committee's (FOMC) decision on Wednesday, with several coins experiencing notable gains. The FOMC announced a 0.25% increase in the federal funds rate, as widely anticipated, and indicated that further rate hikes are likely in the coming months. This decision, along with the committee's commitment to fighting inflation, boosted investor confidence in the crypto market.

Among the coins that benefited from Wednesday's FOMC meeting, five stood out for their significant gains:

1. Bitcoin (BTC): The world's largest cryptocurrency by market capitalization surged by over 5% following the FOMC announcement. Bitcoin's price reached an intraday high of $28,800, marking a significant recovery from its recent lows. Analysts attribute this rally to increased demand from institutional investors and a growing interest in Bitcoin as a hedge against inflation.

2. Ethereum (ETH): Ethereum, the second-largest cryptocurrency, also experienced a strong rally, gaining more than 7% in the hours following the FOMC decision. Ethereum's price climbed to an intraday high of $1,850, driven by anticipation of the upcoming Shanghai upgrade and growing demand for decentralized finance (DeFi) services.

3. Cardano (ADA): Cardano, the eighth-largest cryptocurrency by market capitalization, saw its price increase by over 6% in the wake of the FOMC announcement. Cardano's price reached an intraday high of $0.38, fueled by optimism surrounding the project's ongoing development and the upcoming Vasil hard fork.

4. Polkadot (DOT): Polkadot, the ninth-largest cryptocurrency, gained over 5% following the FOMC decision. Polkadot's price climbed to an intraday high of $6.50, buoyed by growing interest in interoperability and cross-chain communication within the blockchain ecosystem.

5. Solana (SOL): Solana, the tenth-largest cryptocurrency, experienced a significant rally, with its price increasing by over 8% in the hours after the FOMC announcement. Solana's price reached an intraday high of $21.50, driven by growing demand for high-speed,

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