Crypto market jumps following Fed rate decision

Quick Take

  • Bitcoin was trading around $23,800, up about 3.5%. Ether climbed significantly, jumping 6.4% to $1,685.
  • Cryptocurrencies traded up across the board, with Polygon’s MATIC up 13%, Cardano’s ADA rising 6%, and Avalanche’s AVAX up 17.9%.
  • Crypto stocks also rose significantly, with Silvergate trading up 22% and Coinbase up 13%.

Crypto prices soared after the market opened on Thursday, as traders responded to the Federal Reserve’s interest rate decision yesterday with a bullish sentiment.

Bitcoin rose 3.5% to $23,730 around 9:50 a.m. EST, according to TradingView data, pushing toward the upper bound of the $15,000-$25,000 range within which it has traded for around eight months.

Ether also climbed significantly by 6.4% to around $1,685. Polygon's MATIC rose 13%, Avalanche's AVAX was up 17.9%, Uniswap's UNI was up 9%, and Cardano's ADA rose 6%. BNB was also up 6%.

Dog-themed meme coins rose less dramatically, with Dogecoin and Shiba Inu up 2.4% and 4.2%, respectively. 

"We are seeing some positive correlation in crypto with the rally in risk assets," says Stephane Oullette, CEO of FRNT Financial.

Because the FOMC decision was "incrementally dovish," Oullette said, it has partially validated the thesis, among some speculators, that "bitcoin has bottomed."


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That said, "market conditions continue to suggest Bitcoin/crypto traders remain uncertain of the future with BTC futures mostly flat." And medium-term implied volatility levels on BTC options remain historically low.

Crypto stocks

Crypto-related stocks also rose significantly after the market opened.

Silvergate shares rose 21.6% to around $19 by 10 a.m., according to Nasdaq data, rising alongside most other crypto stocks.

Jack Dorsey's Block increased 4.2% to trade around $87, while MicroStrategy increased 4.6%. Coinbase was up significantly, increasing by 10%.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.


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Walden Siew at
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