On Wednesday, the cryptocurrency sector saw a slight 1% gain, pushing total valuation above $3.1 trillion. Bitcoin’s price hit $97,500, spurred by the US Federal Reserve’s decision to pause interest rates. Key altcoins like Solana, SUI, and Alpaca Finance gained momentum as staking yields drew investors. Ethereum’s Pectra upgrade launched, while Crypto.com plans a new Washington office to enhance its US presence.
In brief, Wednesday marked an upward movement in the cryptocurrency sector, crossing the $3.1 trillion valuation for the first time this week, thanks to Bitcoin’s price surging above $97,500. The US Federal Reserve’s recent FOMC meeting kept interest rates steady, with traders taking advantage of this pause, particularly in staking yields for projects like Solana, SUI, and Alpaca Finance.
Bitcoin’s price momentum came into play with bullish responses from not only the Fed’s decision to pause rates but also signals from China regarding potential tariff discussions with the US. Data from Farside showed that following an outflow of $85 million from US Bitcoin ETFs on Tuesday, the market reversed with over $105 million in inflows after the Fed’s announcement, encouraging optimism.
The US Federal Reserve chose to maintain the funds rate at 4.25% – 4.50%, marking the third consecutive pause which aligned with market expectations. Fed Chair Jerome Powell did caution about possible inflationary impacts from tariffs initiated by the Trump administration, posing risks to unemployment and economic growth. As this plays out, investors are more heavily betting on downward rate adjustments in Q2, which could mean increased capital for riskier assets like Bitcoin moving forward.
On the altcoin front, traders began rotating into staking-focused tokens amid rising interest in yield on USD-denominated assets. Notably, SUI garnered significant attention with over $1.7 billion in trading volume over 24 hours, overtaking more prominent assets like DOGE, BNB, and Cardano. Solana’s price too saw upward movement, hovering around the $150 mark and surpassing third-place XRP in trading volume.
Alpaca Finance also saw a massive price jump of 58% on the day, appearing on Coingecko’s leaderboard for top gainers. Meanwhile, Ethereum pulled back slightly by 0.3% to $1815.52, as BNB and Cardano also retraced some earlier gains after peaking at $607 and breaking resistance at $0.70 respectively. The market’s global cap is steady, indicating potential consolidation stages for altcoins.
In exciting developments, Ethereum successfully launched its Pectra upgrade on the mainnet, enhancing smart wallet capabilities and staking functions. This upgrade, the most significant since the Merge, included multiple Ethereum Improvement Proposals (EIPs) aimed at improving user experience and Layer 2 scalability and was initiated at epoch 364032 on May 7, 2025.
Meanwhile, in news that might influence regulatory perceptions in the US, Crypto.com announced its plans to set up a new regional office in Washington, D.C. This location, close to the White House, will serve as a base for public and governmental relations efforts aimed at enhancing engagement with US policymakers as the firm expands its market footprint.
Overall, markets remain vibrant, with various assets gearing up for possible bullish moves amid this evolving landscape. Traders continue to be cautious but optimistic, anticipating what might happen next as both Bitcoin and altcoins navigate this challenging terrain happening currently in the broader economic picture.
