Bitcoin Touches $35K, Rising To Yearly Highs, As FOMC Leaves Rates Unchanged — Dogecoin, Ethereum Spike: Analyst Says King Crypto's Rise To $37K Easy

Benzinga - by Mehab Qureshi, Benzinga Staff Writer.

Major cryptocurrencies experienced a surge on Wednesday evening following the conclusion of the Federal Open Market Committee’s (FOMC) penultimate meeting of 2023.

What Happened: Bitcoin is currently trading at approximately $35,590. This surge in price has allowed Bitcoin to finally surpass the $35,000 mark, which had been preventing its upward movement for the past two weeks.

The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) has decided to keep its benchmark fed funds rate range steady at 5.25%-5.50%. This comes as no surprise, as it was widely anticipated.

During the post-FOMC press conference, Fed Chairman Jerome Powell acknowledged that the recent increase in U.S. Treasury yields has led to tighter financial conditions. However, he also mentioned that the possibility of an additional rate hike remains open if deemed necessary.

“Fed’s likely done after back-to-back holds kept rates at a 22-year high,” Edward Moya, market analyst at OANDA, noted in a newsletter.

If the next Bureau of Labor Statistics inflation reading on Nov. 14 indicates a decrease, it’s highly likely that we will witness a surge in investor confidence and an influx of money into risk assets. This anticipation stems from the belief that the next interest rate decision will involve a cut. This positive development will not only impact equity markets, but it will also have a ripple effect on bond markets. As yields decrease, the back end of the yield curve will flatten.

Traditionally, a Santa rally occurs in the weeks leading up to Christmas, as a widespread sense of goodwill permeates equity markets. It’s usually just a temporary blip in the grand scheme of things.

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The global crypto market cap currently stands at $1.31 trillion, reflecting an increase of 2.82% in the past 24 hours.

Stocks surged on Wednesday, bouncing back from a tough few months, thanks to the Federal Reserve’s decision to keep interest rates steady for the second time in a row. This news has given investors hope that the central bank will maintain its stance for the rest of the year. The S&P 500 saw a climb of 1.05%, reaching 4,237.86 and even briefly surpassing its 200-day moving average. Not to be outdone, the Nasdaq Composite also joined in on the upward movement, gaining 1.64% and closing at 13,061.47.

The bond market reacted to the interest rate decision, causing yields to slide. Additionally, the Treasury’s announcement of its bond sale plans further boosted the stock market. The 10-year Treasury yield dropped below the 4.8% mark, marking a decrease from the unsettling move above 5% in October that had rattled the markets. Meanwhile, the 2-year Treasury yield also dipped below 5%.

See More: Best Cryptocurrency Scanners

Analyst Notes

Crypto analyst Michael Van De Poppe said that Bitcoin reached a new yearly high. "Not a massive breakout, but as long as we stay above $34.8K, the next target is $36.5-37K. Altcoins to follow after."

According to the pseudonymous crypto analyst Credible Crypto, it seems that a breakout is on the horizon. "Something like this to wipe out some late longers real quick would not surprise me. Quick dump down into demand, late longers flushed + fresh bears pile in into demand, higher low printed, run it back up into the real pump."

The chart plotted by the analyst, sees BTC reaching $37K easily.

There is our breakout