The positive stance on crypto growth had a number of unique undertones from top regulatory bodies including the Reserve Bank of India (RBI).
The digital currency ecosystem is on the bounce today as evident in the uptick in the combined crypto market cap which surged by 4.52% to $1.09 trillion. Bitcoin (BTC) is leading the bullish momentum in the market today with its price up by 3.49% to $23,813.69 and many altcoins are following the trend.
Bitcoin has been an exceptionally positive price mover over since the start of the year. The premier cryptocurrency is up by 15% over the past 2 weeks and by over 43% in the past month. With last year known to be the period when the crypto winter gained its full expression in most risk assets like Bitcoin, the coin has pared off some of the losses it accrued within that time frame.
As against the more than 65% loss YoY it records at the end of the year, the cryptocurrency is now down by just 38.6% per data from Coingecko. Riding on Bitcoin’s growth, the majority of altcoins are now on the bounce as well.
Ethereum (ETH) is changing hands at $1,670.87, up 6.07%, and Binance Coin (BNB) topped $329.47 atop a 7.14% growth over the past 24 hours. Solana (SOL), Avalanche (AVAX), and Cardano (ADA) are also on the bounce, marking an encompassing push for cryptocurrencies.
The positive stance on crypto growth had a number of unique undertones from top regulatory bodies including the Reserve Bank of India (RBI). RBI officials have been advocating global coordination in crypto regulation in order to achieve the desired result.
“As for the Indian economy, whose Budget was presented today, Finance Minister Nirmala Sitharaman made no mention of crypto, virtual or digital assets, blockchain or central bank digital currencies,” said ZebPay Trade Desk. “India has been keeping cool on a crypto bill since early last year, stating that crypto regulation cannot succeed without global coordination, something that is a priority with its power to lead the G-20.”
Bitcoin & Altcoins Price and the Impact of Interest Rate Dip
The growth in Bitcoin and other altcoins also stems from the dovish stance of the United States Federal Reserve at the conclusion of its 2-day policy meeting on Wednesday hiked interest rates by 25 basis points. This mild hike is in line with analysts’ expectations.
While investors are positive the Fed’s turn is a good move for the crypto ecosystem and the broader financial ecosystem, there is a need for caution from market makers with respect to the Fed’s fight against inflation. Notably, the Fed wants the past hawkish interest rate hikes to have an effect on the economy before renewing its harsh stance.
Inflationary reading as of December came in at 6.5% and while it is much lower than the highs recorded last year, it is still far above the Federal Reserve’s target of 2-4%. For now, the market is capitalizing on positivity in the broader financial world.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
