Bitcoin Surges 9% to $66,500 Following Fed's Interest Rate Decision

Bitcoin surged 9% to $66,500 after the U.S. Federal Reserve maintained interest rates, with Ethereum also experiencing a significant increase. Explore the market response, altcoin rally, and global market cap surge.

Bitcoin Surges 9% to $66,500 Following Fed’s Interest Rate Decision

Cryptocurrency enthusiasts witnessed a significant surge in Bitcoin’s price on March 21, as it jumped 9% to reach $66,500. This surge came after the U.S. Federal Reserve, led by Chair Jerome Powell, announced its decision to maintain existing interest rates.

Ethereum Also Sees a Boost

In tandem with Bitcoin’s rally, Ethereum, the second-largest cryptocurrency by market capitalization, experienced a notable increase of 13%, reaching $3,468. Powell emphasized that despite recent high inflation figures, the overall trend indicated a gradual easing of price pressures, reinforcing the Fed’s projection of a smooth economic transition.

Cryptocurrency Price on March 21

Market Response and Expectations

The Federal Reserve’s stance bolstered expectations of a potential rate cut in June, with the likelihood increasing from 59% to 77%, as indicated by the CME’s FedWatch Tool. This shift in sentiment contributed to Bitcoin’s resurgence and set the stage for a possible retest of the $70,000 mark.

Altcoins Join the Rally

Following the Fed’s announcement, the broader cryptocurrency market witnessed a collective upswing, with various altcoins outperforming Bitcoin. Notable performers included Solana (13.8%), BNB (8.3%), XRP (5.3%), Cardano (9.3%), Avalanche (7%), Dogecoin (20.3%), Shiba Inu (11.2%), and Toncoin (11.2%), all registering substantial gains.

Global Market Cap and Bitcoin’s Dominance

The surge in major cryptocurrencies propelled the global cryptocurrency market cap to approximately $2.51 trillion within a 24-hour period. Bitcoin, commanding a market cap of $1.3 trillion, maintained its dominance at 52.07%, according to CoinMarketCap. Despite the positive momentum, Bitcoin’s trading volume in the last 24 hours experienced a 16.7% decline, settling at $60.8 billion.

Future Outlook

Bitcoin’s price movements now face resistance levels at $69,400 and $73,000, with a support base established at $65,000. As the cryptocurrency market continues to react to macroeconomic factors and institutional decisions, investors remain vigilant for further developments that could influence digital asset valuations.

By Flora Bennett