Authored by Mary Liu, BitpushNews
During the early trading session on Wednesday, the US Department of Labor released the Consumer Price Index (CPI) for May, which was lower than expected. This led to a surge in the crypto market, with the price of Bitcoin rebounding to over $70,000. However, the momentum quickly waned after the Federal Reserve decided to keep interest rates unchanged and hinted that there may only be one rate cut this year. At the time of writing, the trading price of Bitcoin was $68,250, with a 24-hour increase of 1.5%.
Altcoins performed well, with most tokens in the top 200 by market cap seeing price increases. The newer DePIN token Io.net (IO) performed the best, with a 35% increase, followed by Livepeer (LPT) rising by 19.3% and Injective (INJ) increasing by 12.6%. Akash Network (AKT) experienced the largest decline, dropping by 10.5%, while FLOKI (FLOKI) and MANTRA (OM) fell by 7.9% and 5.3% respectively.
Currently, the total market capitalization of cryptocurrencies is $2.48 trillion, with Bitcoin’s market share at 54.1%.
In the US stock market, the Dow Jones Industrial Average closed down 30 points or 0.09% on Wednesday, while the S&P 500 Index rose by 0.85% and the Nasdaq increased by 1.53%. Nvidia (NVDA.O) saw a 3.5% increase, Apple (AAPL.O) rose by 2.86%, and at one point during trading, Apple reclaimed the title of the world’s most valuable company.
The decision to maintain interest rates reflects the Federal Reserve’s cautious stance on inflation, as they seek to balance inflation control with economic stability.
Analysts at Bitfinex noted that while the Federal Reserve’s decision to keep interest rates stable has significant implications for asset flows and market prices, the global trend is towards rate cuts, making it only a matter of time before the US Federal Reserve follows suit.
In the short term, volatility in the crypto market may increase. Analysts suggest that despite short-term fluctuations following the Federal Reserve’s decision, the overall trend for Bitcoin (BTC) may remain positive, especially if the overall economic outlook continues to improve.
In conclusion, as investors remain optimistic about potential rate cuts later in the year, Bitcoin may consolidate around current levels or experience moderate increases. CEO of Ionic Digital, Matt Prusak, stated that as the Federal Reserve aims for a soft landing, any substantial declines in Bitcoin could present attractive accumulation opportunities for long-term investors.