Veröffentlicht von • Crypto prices are surging strongly in a 9 month rally, with Bitcoin at $21,000, Ethereum crossing $1,500 and altcoins powering north.
• Optimism is high that the Federal Reserve will pivot off high interest policy sooner than expected, following cooler inflation data.
• Dogecoin and Shiba Inu are back on the rise, as some analysts fear that the market may be premature in pricing in an earlier-than-expected Fed pivot.
Cryptocurrencies have been on a wild ride to start the new year, with the crypto market currently experiencing its strongest rally in nine months. Bitcoin is back in the 20s, with the world’s largest cryptocurrency currently trading close to $21,000 after opening the year at just under $29,000. Ethereum has crossed the $1,500 mark, while altcoins are powering north, too.
From a snapshot of the market on January 1st, crypto prices have seen a steady incline since, with a sea of upward moves. This growth has been largely attributed to increasing optimism that the Federal Reserve will pivot off its high interest rate policy sooner than expected, following cooler than expected inflation data.
The next big day for the crypto markets is February 1st, when the Fed will decide on the latest interest rate policy. In the meantime, altcoins have been the biggest beneficiaries of the current rally, with Solana leading the charge. The blockchain platform is up 130% since the start of the year, while other altcoins such as Cardano, Polkadot and Uniswap are also experiencing significant gains.
Interestingly, memes are also on the rise, with Dogecoin and Shiba Inu both making some moves. Dogecoin has tripled in value since the start of the year, while Shiba Inu has surged by over 700%.
However, some analysts fear that the market may be premature in pricing in an earlier-than-expected Fed pivot. With the global economy continuing to grapple with the coronavirus pandemic, the future of interest rate policy is uncertain. Until more clarity is given, the crypto market is likely to remain volatile.