Cryptocurrencies experienced a rally over the past 24 hours as global markets processed the anticipated quarter percentage rate increase by the Federal Reserve. The decline in crude oil prices, coupled with the reduction in bond yields, has strengthened market sentiment. Aggregate market capitalisation experienced an increase of over one percent, while Bitcoin reached a 24-hour peak of 77,079. The Federal Reserve on Wednesday reached a unanimous decision to elevate the target range for the federal funds rate by a quarter percentage point, setting it at 3.75 – 4 percent. The FOMC recognised the persistence of elevated inflation and reaffirmed its commitment to achieving price stability. In the Summary of Economic Projects released simultaneously, the Fed raised the GDP growth projection for 2026 to 2.3 percent from the 2.2 percent projected in June. The unemployment rate projection has been adjusted to 4.1 percent, down from the previously estimated 4.3 percent in June. The Fed anticipates that PCE inflation will rise to 3.7 percent in 2026, an increase from the 3.6 percent projection made in June. The core PCE is anticipated to increase to 3.4 percent, up from the previously projected level of 3.3 percent at the time of the FOMC in June.
The Federal Funds rate is anticipated to increase to 4.1 percent in 2026, up from the previously expected level of 3.8 percent as outlined in the projections made in June 2026. The projection of the federal funds rate for 2027 has been elevated to 4.1 percent from the previously anticipated 3.6 percent in June, while the forecast for 2028 has been adjusted upward to 3.9 percent from the earlier estimate of 3.4 percent made in June. The longer run projection has been adjusted upward to 3.2 percent, an increase from the previously anticipated 3.1 percent. Simultaneously, the CME FedWatch tool, which monitors the expectations of interest rate traders, indicates that the probability of the Federal Funds rate staying at its current level of 3.75-4.00 percent by the conclusion of 2026 stands at 13.7 percent. It stood at 11.7 percent yesterday, 29.8 percent a week prior, and 45.4 percent a month earlier. Despite markets pricing in another rate hike before the end of the year, sentiment in the cryptocurrency market remains optimistic. The CoinMarketCap’s Fear and Greed Index, a measure of the sentiment prevailing in the cryptocurrency market, remains steady at 64, implying a state of “greed”.
Aggregate crypto market capitalisation has increased by 1.4 percent over the last 24 hours, reaching $2.61 trillion. Among the top 100 cryptocurrencies, 75 are experiencing overnight gains exceeding one percent, while 3 cryptocurrencies are facing overnight losses surpassing one percent. Bitcoin, the largest cryptocurrency, is currently trading 1.7 percent higher on an overnight basis at $76,692.28. The leading cryptocurrency has experienced a decline of half a percent over the past week and continues to bear year-to-date losses of 12.4 percent. Bitcoin Spot ETF products in the U.S. experienced net outflows that decreased to $296 million on Wednesday, down from $450 million on Tuesday. iShares Bitcoin Trust ETF topped with net outflows of $144 million. Bitcoin remains in the 13th position in the global ranking of all assets according to market capitalisation data from companiesmarketcap.com. The leading cryptocurrency occupies a position between Broadcom, ranked 12th, and Tesla, ranked 14th. Ethereum is trading 3.4 percent higher at $2,467.20. The leading alternate coin has experienced a 1.4 percent increase over the past week. Ethereum Spot ETF products in the U.S. experienced an increase in net outflows, climbing to $224 million on Wednesday, up from $142 million on Tuesday. iShares Ethereum Trust ETF topped with net outflows of $110 million. Ethereum has ascended to the 63rd position in the global ranking of all assets based on market capitalisation, as reported.
The fourth-ranked BNB experienced a rally of 2.3 percent overnight, leading to a price increase to $725.85. 5th ranked XRP, a payments-focused cryptocurrency, added 2.4 percent overnight and is currently trading at $1.30. The price of 7th ranked Solana experienced an increase of 3.8 percent overnight, reaching $100.57. On Wednesday, Solana Spot ETF products listed in the U.S. experienced net inflows amounting to $1 million. TRON is currently positioned 8th overall, trading at a decrease of 0.07 percent, with a price of $0.3341. The 9th ranked Zcash experienced a notable overnight increase of 11.6 percent, marking a record surge. The cryptocurrency is currently trading at $1,392.70. 10th ranked Hyperliquid is trading 4.6 percent higher on an overnight basis, at $81.94. On Wednesday, Hyperliquid Spot ETF products listed in the U.S. experienced net inflows amounting to $2 million.
