Crypto Market Thrives as Fed Maintains Interest Rates

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During the Federal Open Market Committee (FOMC) meeting on January 30th, despite keeping interest rates unchanged, a significant sense of optimism emerged among crypto market participants. Bitcoin (BTC) saw a decline to approximately $105,000, while major altcoins such as Ethereum (ETH) , Solana (SOL), and XRP showed a parallel increase. Furthermore, Onyxcoin (XCN) stood out as the biggest gainer, surging by up to 30% within the day.

Fed’s Interest Rate Decision

The U.S. Federal Reserve decided to keep interest rates in the range of 4.25% – 4.5%. Fed Chair Jerome Powell noted that banks could provide services to the crypto sector as long as risks are managed appropriately.

Jerome Powell stated banks could serve the crypto sector with suitable risk management.

Bitcoin and Leading Altcoins Surge

Bitcoin price increased by about 3% during the day, reaching $105,176. ETH and XRP also gained value by 2% and 1% respectively. The global crypto market capitalization rose by 2.5% to $3.55 trillion, while market volume increased by 9% to $125.99 billion.

Ali Martinez indicated that over 70 organizations holding more than 1,000 BTC have either exited the network or redistributed their assets.

Onyxcoin’s Rapid Ascent

Onyxcoin (XCN) became the top-performing cryptocurrency of the day with a 30% increase. Other notable gainers included Hyperliquid (HYPE) at 18%, Fartcoin (FARTCOIN) at 16%, and Jito (JTO) at 13%.

Ethereum and Market Expectations

Ethereum’s Mercantil Value to Realized Value (MVRV) ratio fell below the 160-day moving average. Analyst Ali Martinez suggested this could indicate a potential 40% correction.

Michaël van de Poppe proposed that if BTC surpasses $105,000, it could reach an all-time high in February.

Solana (SOL) rose by 5% to $241, while meme coins like Dogecoin and Shiba Inu saw increases between 1% and 6%. In contrast, DeXe (DEXE) lost 12%, Pudgy Penguins (PENGU) lost 6%, dogwifhat (WIF) lost 4%, and Movement (MOVE) lost 3%.

This activity in the crypto market allows participants to evaluate the impact of the interest rate decision and form expectations regarding future price movements.

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