The cryptocurrency market witnessed a significant rise today as investors turned their attention back to risk-betting assets following the Fed’s latest decisions. The decline earlier this week, attributed to concerns about US inflation data and the FOMC decision, took a positive turn as the Federal Reserve maintained its interest rate and outlined plans for expected cuts in 2024 and beyond. Especially coins such as BONK, ADA, XRP experienced an increase. The Coinbase announcement attracted attention behind the rise of BONK.
FED kept interest rates steady
As we reported as Kriptokoin.com, the Federal Reserve, with its unanimous decision on Wednesday, December 14, chose to keep the benchmark overnight borrowing interest rate in the range of 5.25%-5.5%. This decision, supported by a moderate inflation rate and stable economic conditions, indicates a positive outlook for the global financial market and contributed to the rise in the cryptocurrency market. Looking ahead, the Federal Open Market Committee (FOMC) has announced plans for at least three rate cuts in 2024, each expected to be in quarter-percentage point increases. This strategic move, which aims to further strengthen economic stability, was welcomed with enthusiasm by market participants.
The cryptocurrency market experienced a significant increase in prices following the Federal Reserve’s announcements. Flagship cryptocurrency Bitcoin reached $42,718.87, up 4.58% in the last 24 hours. This increase has instilled confidence in investors, and many are predicting a new annual high will be seen in the coming days. Other leading cryptocurrencies also showed positive movements; Ethereum is up 3.98% to $2,250.27, XRP is up 2.91% to $0.624, and Cardano is up a significant 16.90% to $0.6535. The overall crypto market cap increased by 4.64% to $1.6 trillion, reflecting renewed optimism in the market.
BONK posts “modest” earnings
Even in the meme coin category, cryptocurrencies have shown modest gains, indicating investors’ willingness to take speculative positions. Dogecoin rose 4.47% to $0.09555, while Shiba Inu rose 5.51% to $0.000009843. The crypto market’s overall fear and greed index rose to 76, indicating growing confidence among investors.
Meanwhile, Solana-based meme coin Bonk (BONK) surged 40% in the past 24 hours after leading exchange Coinbase said it would list the token on Thursday, making it the third-largest cryptocurrency behind Dogecoin (DOGE) and Shiba Inu (SHIB). He turned it into a meme coin. “Once sufficient supply of this asset is ensured, trading will begin gradually on our BONK-USD trading pairs,” the exchange said in its announcement on Wednesday. Given the exchange’s tendency to be selective about the tokens it offers, Coinbase listings have often led to a short-term increase in token prices, and a listing can give investors a sense of legitimacy for listed projects.
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