Crypto Market Rises to $2.58T After Fed Rate Hike
The crypto market cap rose to $2.58 trillion after the Federal Reserve raised rates 25 basis points to a 3.75%–4.00% target range; traders had priced the hike in before the vote.
The total crypto market cap climbed to $2.58 trillion on Wednesday, 2.61% above Tuesday’s low, hours after the Federal Reserve increased its policy rate by 25 basis points to a 3.75%–4.00% target range. Market activity showed most selling occurred in the two weeks before the Fed decision, rather than after the announcement.
The quarter-point increase was the Fed’s first rate rise since 2023. Futures markets had assigned roughly 70% odds to a 25-basis-point move a week before the decision. The market peak of $2.73 trillion on September 3 fell to about $2.53 trillion by Tuesday, a decline that largely preceded Wednesday’s statement.
Exchange-traded funds tied to crypto recorded smaller outflows in September than in the spring. After inflows in July and August, crypto ETFs have seen $278.85 million leave so far in September. That compares with $6.94 billion in outflows during May and June, when Bitcoin fell about 20.6% across those two months. Bitcoin is down about 1.8% in the current September period.
Price levels have shown some consistency since early September. The $2.53 trillion mark has acted as support; a drop below that level would next expose a lower zone near $2.13 trillion. On the upside, a move above $2.66 trillion and a daily close above $2.73 trillion are the market metrics cited by technical observers for a return to the prior larger-cap level.
Zcash was the top daily gainer among major tokens on Wednesday. ZEC rose about 19.3% to $1,369 and is roughly 168% higher over the past month. A spot Zcash fund listed on NYSE Arca in late August has attracted significant new capital. Zcash’s price advanced about 178% between August 11 and September 9, traded in a narrow range, then broke higher on September 16 with heavy volume. Near-term technical levels include $1,344 as support and $1,540 and $1,857 as resistance targets.
Federal Reserve communications remain a focus for market participants. Sixteen of 18 Fed officials project at least one additional rate increase this year. Investors and traders are monitoring policy statements, ETF flows and technical support and resistance levels for indications of how prices may move next.
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