WASHINGTON (dpa-AFX) - Cryptocurrencies traded firmly above the flatline as markets reacted to the Federal Reserve's interest rate decision and guidance. Crypto markets also assessed the contents of a comprehensive report released by the White House that enumerated the approach to strengthening American leadership in Digital Financial Technology.
The Federal Reserve on Wednesday decided to maintain the target range for the federal funds rate at 4.25 to 4.5 percent. It acknowledged the moderation in economic activity in the first half of the year as well as the low unemployment rate, solid labor market conditions and the elevated inflation. The Fed's forward guidance also did not carry any firm hints of a rate cut in the next meeting due in September.
The CME FedWatch tool that tracks the expectations of interest rate traders shows rate cut expectations for the September review falling to 39 percent from 48 percent a day earlier. Fading rate cut expectations lifted the Dollar as well as the six-currency Dollar Index to as high as 100.08 on Thursday. Hawkish comments by Fed Chair Jerome Powell had rattled sentiment post the interest rate announcement.
The Crypto report released by the White house on Wednesday endorses the notion that digital assets and blockchain technologies can revolutionize not just America's financial system, but systems of ownership and governance economy wide. However, the absence of a detailed roadmap for the creation of the widely expected Bitcoin Strategic Reserve dampened sentiment.
Amidst crypto market's reaction to the two regulatory documents, overall market capitalization has increased close to half a percent. It is currently at $3.87 trillion. The 24-hour trading volume has increased 5.6 percent overnight to $168 billion.
Bitcoin edged up 0.18 percent overnight to trade at $118,145.93. It is currently trading 4 percent below the all-time-high of $123,091.61 recorded on July 14. The original cryptocurrency traded between $118,919.98 and $115,800.83 during the past 24 hours.
The leading cryptocurrency with an overall market share of 60.9 percent is trading with gains of 0.04 percent over the 7-day horizon and gains of 10.4 percent over the 30-day horizon. Year-to-date gains are a little over 26 percent.
Bitcoin has rallied to the 6th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
Inflows to Bitcoin-based Spot ETF products in the U.S. recorded $47 million on Wednesday versus $80 million on Tuesday. iShares Bitcoin Trust (IBIT) recorded inflows of $34 million.
Ethereum edged up 0.04 percent overnight to trade at $3,783.59. Ether has gained 4.2 percent in the past week. Gains in 2025 are close to 13.6 percent. Ether's current trading price is 23 percent below its all-time-high. The 24-hour trading range was between $3,877.47 and $3,683.14.
Ethereum-based Spot ETF products witnessed inflows of $6 million on Wednesday versus $219 million on Tuesday. Ethereum is currently ranked 25th in the ranking of all assets as per market capitalization published by companiesmarketcap.com.
3rd ranked XRP added 0.39 percent overnight to trade at $3.09, around 19 percent below the all-time high. 5th ranked BNB gained 0.85 percent overnight at its current trading price of $792.55. The price of 6th ranked Solana decreased 1.2 percent overnight to $176.29. 8th ranked Dogecoin dropped 0.67 percent overnight to trade at $0.2163. DOGE is currently trading 71 percent below the record high. 9th ranked TRON gained 0.6 percent overnight and is currently changing hands at $0.3271. 10th ranked Cardano slipped 0.15 percent overnight to trade at $0.7610. The trading price is 75 percent below the cryptocurrency's all-time high.
72nd ranked Pump.fun (PUMP) topped overnight gains among the top 100 cryptocurrencies with a gain of more than 25 percent. 31st ranked Ethena (ENA) and 80th ranked Sonic (S) followed with gains of more than 13 percent.
77th ranked Fartcoin (FARTCOIN) and 56th ranked SPX6900(SPX) topped overnight losses among the top 100 cryptocurrencies with a decline of more than 3 percent.
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