On December 14th, the US Federal Reserve announced another interest rate hike, causing the price of Bitcoin and other altcoins to fall. The previous day, the US Bureau of Labor Statistics published the November Consumer Price Index numbers, which came in at 7.1%, slightly lower than the expected 7.3%. This led to a market surge, and Bitcoin’s price soared over $18,000.
However, during the FOMC meeting, Fed Chairman Jerome Powell announced another interest rate hike of 50 basis points. This news had the opposite effect on the market, causing the price of Bitcoin to drop.
The cryptocurrency market has taken a hit since the interest rate hike, with most coins trading in the red. Altcoins, in particular, have been hit quite hard by Bitcoin’s rising dominance.
In the past 24 hours, the Bitcoin dominance rate, which measures the share of Bitcoin relative to the rest of the market, has fallen just by 0.86%. While the overall market is struggling, Bitcoin is managing to hold its own and gain ground on its competitors.
The rise in Bitcoin dominance occurs against the backdrop of a broader market downturn, with many investors concerned about the state of the global economy and the potential impact of rising inflation on cryptocurrencies. While the long-term outlook for the market remains uncertain, some experts believe that the recent dip may provide a buying opportunity for those looking to get into the crypto space.
Despite the market’s challenges, Bitcoin and other major cryptocurrencies remain popular among investors and traders. The increasing dominance of Bitcoin is a testament to its continued relevance and resilience, even in the face of market volatility and uncertainty.
It remains to be seen whether Bitcoin and other cryptocurrencies can continue to weather the storm or whether the current market downturn will prove to be a lasting trend. In the meantime, many investors and traders will be watching the market closely for opportunities to buy or sell.
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