Bitcoin Dominates Crypto Discussions as Fed Rate Hike Spurs $30,000 Surge

Bitcoin Dominates Crypto Discussions as Fed Rate Hike Spurs $30,000 Surge

Following the recent rate hike by the US Federal Reserve on Wednesday, July 26, discussions surrounding Bitcoin experienced a sharp rise, coinciding with BTC’s price nearing the $30,000 mark in a matter of hours.

At present, BTC is trading 0.7% higher, valued at $29,464, with a market capitalization of $572 billion. The broader crypto market also displayed positive momentum, with top altcoins like Ether (ETH), XRP, and Binance Coin (BNB) all seeing gains of 1.5%. Solana (SOL) emerged as the top gainer among the top ten cryptocurrencies, experiencing a remarkable 7% surge. Cardano (ADA) and Polygon (MATIC) followed suit with gains of over 3% each.

The recent rate hike led to US interest rates reaching a new 22-year high. On-chain data provider Santiment explains that the Federal Open Market Committee (FOMC) raised US rates to their highest level since 2001, with an additional 25 bps increase. The market’s response may hinge on social reactions, and early signs indicate a “sell the rumor, buy the news” sentiment, with positive price movements expected.

Bitcoin once again stole the spotlight from altcoins after the FOMC rate hike, triggering a surge in discussions about Bitcoin compared to other top 100 assets. This increased social dominance often indicates fear, potentially enhancing the likelihood of further price appreciation, as reported by Santiment.

Another significant bullish indicator is the decline in Bitcoin supply on exchanges, reaching a 5-year low. Despite prevailing selling pressure, a substantial number of Bitcoin holders have been transferring their coins to self-custody wallets.

Furthermore, Federal Reserve Chairman Jerome Powell hinted at the possibility of another rate hike in September 2023. Consequently, investors may shift their focus towards Bitcoin instead of altcoins in the coming months.