On Wednesday, May 4, the U.S. Federal Reserve announced an interest rate hike by 50 basis points in order to control the soaring inflation. The announcement was quite on the expected lines and the U.S. equity market as well as the crypto market rallied soon after.
The Bitcoin (BTC) price is up 5% in the last 24 hours and has moved closer to $40,000. As of press time, BTC is trading at a price of $39,902 with a market cap of $755 billion. The broader crypto market is also up by 5% adding more than $80 to investors’ wealth.
Wednesday’s breakout in Bitcoin comes along with similar breakouts seen in the S&P 500 and Gold. On-chain data provider Santiment דערקלערט:
"די #געפֿיטערט געמאכט זייער מאַך ווי דערוואַרט הייַנט, מיט אַ 50 יקער פונט אינטערעס קורס העכערונג. ניט סאַפּרייזינגלי, די פּראַל שיפטיד # בולליש כּמעט מיד פֿאַר #קריפּטאָ, פּונקט ווי עס איז געווען נאָך די מאַרץ שפּאַציר. מיר קען האָבן אן אנדער #פאַרקויפן די רומאָרס קויפן די נייעס scenario”.
On the other hand, today’s breakout and candle formation show that Bitcoin has breached past the multi-week resistance. If Bitcoin manages to more past $40,000, it can make further rally to $42,000 and $45,000.
# בטק is breaking out past the multi-week resistance$ בטק # קריפּטאָ # ביטקאָין pic.twitter.com/4tWWhjHWSJ
- Rekt Capital (@rektcapital) מייַ קסנומקס, קסנומקס
Gains in the Altcoin Market
As we know, Ethereum (ETH) has been closely following BTC moves this year. Thus, the world’s second-largest cryptocurrency is also up 5% and currently trading at $2,940. Terra’s LUNA and Ripple’s XRP are also up by 5% as of press time. Furthermore, ETH is giving out some bullish signals on the technical charts as well.
$ עטה – OBV has stayed bullish and above support the past week. There weren’t any signs to sell, only signs that support was holding. Now we are seeing bullish signs and a breakout. pic.twitter.com/LPvJsLZM1Z
- ינקאָמעשאַרקס (@ ינקאָמעשאַרקס) מייַ קסנומקס, קסנומקס
Some of the strongest movers in the top ten crypto-list are Solana (SOL), Cardano (ADA), and Avalanche (AVAX). The Solana price is up by 10% and is currently trading around $95.
Cardano (ADA) and Avalanche (AVAX) have given a strong breakout each gaining more than 13%. While it remains to be seen whether this is a real trend reversal or just a momentary breakout for now.
די דערלאנגט אינהאַלט קען אַרייַננעמען די פערזענלעכע מיינונג פון די מחבר און איז אונטערטעניק צו די מאַרק צושטאַנד. טאָן דיין מאַרק פאָרשונג איידער ינוועסטינג אין קריפּטאָקוררענסי. דער מחבר אָדער די ויסגאַבע איז ניט פאַראַנטוואָרטלעך פֿאַר דיין פערזענלעכע פינאַנציעל אָנווער.
Source: https://coingape.com/sell-the-rumor-buy-the-news-bitcoin-gives-5-upside-after-fed-meeting/