Bitcoin Surges to $98,000 as Fed Holds Interest Rates Unchanged

Bitcoin has surged back to $98,000 after the Fed held interest rates steady. Following this, Bitcoin’s market dominance increased. Overall crypto markets grew by nearly 1%, alongside gains in traditional stock indexes. However, trading data shows bearish traders faced losses, as Bitcoin’s futures open interest rose.

Bitcoin has made headlines again, regaining $98,000 following the Federal Reserve’s decision to maintain interest rates at their current level. Initially, this news led to a dip in Bitcoin’s price, but it quickly bounced back. This comes after a period of three months during which the Fed opted to keep rates steady, a significant factor for investors.

Looking at the immediate market response, CoinMarketCap reported Bitcoin’s 7-day gain hit 2.04% with fluctuations ranging significantly between $94,494.88 and $97,625.81. Notably, Bitcoin’s market dominance has seen an uptick of 0.44 percentage points, now sitting at 65.45%. This shift signals an increasing preference for Bitcoin over altcoins amid the current market climate.

On a broader scale, the crypto market overall appreciated by 0.95%, reaching a hefty market capitalisation of $2.98 trillion. Traditional markets reflected similar growth with the S&P 500, Nasdaq, and Dow Jones Industrial Average posting gains of 0.43%, 0.27%, and 0.70% respectively, suggesting a generally upbeat economic sentiment.

However, not all data paints a rosy picture for Bitcoin. In the futures market, open interest for Bitcoin rose by 1.93% to $64.37 billion, indicating a spike in leveraged trading activity. According to CoinGlass, the last 24 hours saw liquidations total around $273,240, with short traders experiencing the brunt of it at $225,840. This suggests that many bearish traders may have misinterpreted recent stock market movements, leading to significant losses for those positioned against Bitcoin’s price surge.