The digital currency market got a boost after the recent Federal Reserve meeting as top coins like Bitcoin and Ethereum jumped higher. Bitcoin bounced back above $65,000 reaching its highest level in over a week.
After declining in the initial hours following the Fed announcement, Bitcoin rebounded strongly gaining over 1.7% to hit $65,773 according to Coin Metrics data. The recovery came as market participants analyzed the central bank's policy stance which projected a more gradual approach to rate hikes than previously forecasted.
The Fed kept interest rates unchanged but hinted at a potential slowdown in hikes later this year if inflation comes down. This provided relief to risky sectors like technology and cryptocurrency which tend to benefit in a lower rate environment. Bitcoin, which behaves similar to tech stocks at times, got a fillip from the accommodative signals. Experts pointed to the inverse relationship between rates and Bitcoin price in the past.
Other major coins also joined the party with Ether rising 1.2% to cross $3,379. Altcoins like Matic, Solana, and Dogecoin added healthy gains as well. Stocks of crypto-linked companies such as Coinbase and MicroStrategy surged double-digits, reflecting the positive sentiment sweeping virtual currency markets. Mining and blockchain stocks also recorded strong bounce back moves.
With the latest surge, Bitcoin has recovered over half of its losses seen earlier this week. It hit an all-time high of $73,797 last week but swiftly shed 10% on profit booking. The current rebound has raised hopes that the bull market may continue if the $60k support holds. However, volatility is expected to remain as geopolitical and economic uncertainties persist.
Bitcoin bounces back to $65k after Fed talks
