- Bitcoin’s price topped $67,000 on Wednesday after the Federal Reserve maintained its outlook for three rate hikes this year, which alleviated concerns about more aggressive tightening.
- Ether also bounced back above $4,800 after falling below $4,500 Tuesday due to SEC Chairman Gary Gensler reiterating ether could be an unregistered security.
- Dogecoin surged over 15% to lead a broad rally in major altcoins, with Litecoin also climbing double-digits, as risk appetite improved across crypto markets after the Fed remarks.
Bitcoin‘s price topped $67,000 on Wednesday after Federal Reserve policymakers maintained their outlook for three rate cuts by the end of the year. The news alleviated market concerns about a more hawkish stance from the Fed.
The top cryptocurrency rose over 5% to hit its highest level since May. Ether also bounced back from recent weakness tied to regulatory fears. Meanwhile, Dogecoin and Litecoin led a rally in major altcoins, with Doge surging over 15% at one point.
Bitcoin Price Action
Bitcoin climbed above $67,000 for the first time in over two months. The rally brought bitcoin within striking distance of its all-time high near $69,000.
BTC remains more than 30% higher year-to-date, although it has traded sideways for much of 2022. At its peak, bitcoin was up nearly 50% for the year.
Macroeconomic and geopolitical turmoil have driven bitcoin’s price volatility this year. Expectations of tighter monetary policy initially put pressure on risk assets. More recently, bitcoin has climbed amid rising inflation and Russia’s invasion of Ukraine.
Ether Recovers From SEC Comments
Ether rose over 6% to trade above $4,800. The second-largest cryptocurrency fell below $4,500 on Tuesday after SEC Chairman Gary Gensler reiterated that it could be considered an unregistered security.
Crypto markets were spooked by the prospect of stricter regulation of ether following its merge to proof-of-stake. The network transition, expected later this year, will slash ether’s energy use and remove mining rewards.
Gensler’s comments come as the SEC investigates several “staking-as-a-service” platforms. Regulators are concerned these services might qualify as unregistered securities.
Altcoins Rally
Dogecoin and Litecoin were among the biggest gainers in the top 10 cryptos by market cap. DOGE rose as high as 17%, taking the meme coin back above $0.16. LTC climbed 13% to trade near $125.
Several other major altcoins saw double-digit percentage gains, including Polkadot, Cardano and Solana. The rallies came amid improved risk appetite in crypto markets after the Fed remarks.
Altcoins still lag bitcoin by a wide margin in 2022. DOGE remains down nearly 60% for the year, while LTC has shed 25% over the same span.
Conclusion
Bitcoin and ether bounced back from recent weakness after Federal Reserve comments calmed fears about aggressive monetary tightening. Dogecoin led a double-digit rally from major altcoins as risk appetite improved across crypto markets.
