Cryptocurrency Prices Rise Amid Increased Trading Activity and Market Capitalization
Optimism regarding U.S. monetary policy fuels a 49% surge in cryptocurrency trading volume.
On Thursday, the prices of most cryptocurrencies increased, reflecting renewed optimism among investors regarding the future of U.S. monetary policy.
This uptick followed the Federal Reserve's decision to maintain its forecast of two interest rate cuts within the year.
Bitcoin rose by 0.95% to $86,177.21, while Ethereum saw a decline of 0.87%, trading at $2,014.18.
Other cryptocurrencies also experienced gains, with Ripple increasing by 0.41% to $2.50, Dogecoin rising by 0.85% to $0.1753, and the Trump-themed cryptocurrency soaring by 4.33% to $11.44. The improved sentiment in risk assets among investors was prompted by the Fed's decision to hold interest rates steady, with members of the Federal Open Market Committee reaffirming expectations of two cuts totaling 50 basis points this year.
Despite these optimistic signals, Fed Chair Jerome Powell highlighted growing inflationary pressures stemming from the trade policies of former President Donald Trump, which prompted policymakers to adjust their inflation forecasts upward and to lower their growth estimates.
This improvement in investor sentiment contributed to a 49.37% increase in cryptocurrency trading volume over the past 24 hours, with the overall market capitalization rising by 3.29% to reach $2.82 trillion, according to data from CoinMarketCap.
Earlier this month, David Sachs, the White House cryptocurrency official, revealed that President Trump had signed an executive order to establish a strategic reserve of Bitcoin.
Sachs noted in a post on social media platform X that the reserve would benefit from Bitcoin held by the federal government, acquired through asset seizures for criminal or civil reasons.
Wednesday's increase followed a streak of five consecutive weeks of outflows from cryptocurrency investment funds, marking the longest series of withdrawals on record.
This uptick followed the Federal Reserve's decision to maintain its forecast of two interest rate cuts within the year.
Bitcoin rose by 0.95% to $86,177.21, while Ethereum saw a decline of 0.87%, trading at $2,014.18.
Other cryptocurrencies also experienced gains, with Ripple increasing by 0.41% to $2.50, Dogecoin rising by 0.85% to $0.1753, and the Trump-themed cryptocurrency soaring by 4.33% to $11.44. The improved sentiment in risk assets among investors was prompted by the Fed's decision to hold interest rates steady, with members of the Federal Open Market Committee reaffirming expectations of two cuts totaling 50 basis points this year.
Despite these optimistic signals, Fed Chair Jerome Powell highlighted growing inflationary pressures stemming from the trade policies of former President Donald Trump, which prompted policymakers to adjust their inflation forecasts upward and to lower their growth estimates.
This improvement in investor sentiment contributed to a 49.37% increase in cryptocurrency trading volume over the past 24 hours, with the overall market capitalization rising by 3.29% to reach $2.82 trillion, according to data from CoinMarketCap.
Earlier this month, David Sachs, the White House cryptocurrency official, revealed that President Trump had signed an executive order to establish a strategic reserve of Bitcoin.
Sachs noted in a post on social media platform X that the reserve would benefit from Bitcoin held by the federal government, acquired through asset seizures for criminal or civil reasons.
Wednesday's increase followed a streak of five consecutive weeks of outflows from cryptocurrency investment funds, marking the longest series of withdrawals on record.
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