After a week of steady losses, crypto prices finally turned green in the last 24 hours. This is a surprise because the crypto market reacted pretty well to the latest interest rate hike from the US Fed.
The US central bank hiked the rates by 75 basis points and said it would continue to increase them throughout the year to fight inflation. The next FOMC meeting is scheduled for September.
Earlier, every Fed announcement brought tremendous volatility to the crypto markets. This time, though, it was in terms of hefty price gains.
This positive upside of the Crypto market has pushed the total market capitalization to just above $1.05 trillion, a 7.15% rise over the past 24 hours, according to CoinMarketCap.
Bitcoin, the top coin with a market cap of $438 billion, is up by 8% over the last 24 hours and trades at around $22,991.
Ethereum has also posted price gains of nearly 12% over the past 24 hours. ETH is the second-largest cryptocurrency, with a market cap of $197 B. Other major Altcoins like SOL (8%), Polkadot (8.22%), MATIC (8%, XRP 6%), and ADA (7%) surged northwards with positive price movements.
Following suit, DeFi tokens like Lido (37%), Synthetix (24%), and Uniswap (23%) also posted double-digit gains.
With BTC and ETH enjoying hefty gains after the latest rate hike, traders started liquidating the leading cryptocurrencies.
Over 92,239 traders liquidated in the last 24 hours. The total liquidations come in at $400 million, and the most significant single liquidation order happened on Huobi for the ETH-USD trading pair ($2 million).
What’s Fueling the Market Rally
Today’s bullish price action comes on the heels of the U.S. Federal Reserve 75-basis point hike and strong growth in trading volumes.
Overall trading volumes of cryptocurrencies also jumped 30% from $72.78 billion yesterday to $93.12 billion today. Similarly, stock markets responded positively following the latest rate hike. Yesterday, U.S. stock indices, including Dow Jones Industrial Average (DJI), surged by 1.37%, and Nasdaq Composite (IXIC) increased by 4.06%.