Crypto Market Today: Bitcoin Hits $67K, ETH, DOGE & PEPE Spike

In a remarkable turn of events, Bitcoin has surged back to its 2021 peak of $67K, marking a significant rebound of over 10% from recent lows. This surge follows the Federal Reserve’s recent rate decision and comments on interest rates. Ether also bounced back, and dogecoin saw a spike after Coinbase announced its plan to list futures contracts.

Following the Federal Reserve’s dovish stance, all three major US stock indices—the Dow Jones, the S&P 500, and the Nasdaq—reached new highs, each recording a 1% gain. Bitcoin’s sudden surge of 9% after the FOMC meeting conclusion caught many by surprise.

FED’s Stand and Economic Outlook

The Federal Reserve has chosen to maintain the status quo, keeping the benchmark overnight interest rate steady at 5.25% to 5.50%. However, Fed officials anticipate a gradual decrease in interest rates by three-quarters of a percentage point by the year’s end, aligning with their goal of achieving a 2% inflation target.

Fed Chair Jerome Powell, while acknowledging the rise in inflation figures during January and February, emphasized the weaknesses in the labor market. Powell’s comments, as reported by CNBC, reflected a clear dovish stance amidst the current market downturn, signaling a positive economic outlook.

Read More: Top Cryptocurrencies to Watch in the Next 3-4 Months For 5x Growth Potential

Adjusted Expectations

Last week’s inflation reports, surpassing expectations, prompted traders to adjust their forecasts regarding the extent of interest rate adjustments this year. Initially projecting a 150 basis points decline, traders now lean towards a more modest 71 basis points drop. Notably, the CME FedWatch tool indicates a significant shift, with traders estimating a 54.7% likelihood of rate reductions commencing in June, differing from previous projections.

Market Stands Strong

Despite prevailing regulatory concerns, particularly regarding Ethereum’s potential classification as a security by the SEC, fears surrounding Ethereum alleviated as the market demonstrated resilience in the face of regulatory uncertainties. The overall cryptocurrency market witnessed a robust rebound following the dovish Fed commentary, with Bitcoin surging past $67,000 and Ethereum reclaiming the $3,500 mark.

This resurgence primarily stemmed from spot demand, buoyed by stable funding rates signaling conducive conditions for price appreciation. Analysts from QCP Capital anticipate further validation of this trend through forthcoming Bitcoin spot ETF flow data.

The Federal Reserve’s dovish stance has significantly bolstered bullish sentiment across both traditional and cryptocurrency markets, resulting in record highs and robust rebounds in asset prices.