BTC, ETH, XRP Rally Amid US Fed Hawkish Signal
Bitcoin, Ethereum, Binance Coin, and Ripple’s XRP climbed amid renewed buying interest in the cryptocurrency market, amid the US Federal Reserve’s hawkish stance on inflation.
The total crypto market capitalisation increased by 1.65% to $2.25 trillion. Bitcoin (BTC) saw a 24-hour gain of 2.21%, trading at $63,000, while Ethereum (ETH) rose by 1.46%.
Binance Coin (BNB) has climbed to $570.18, and Ripple XRP is hovering around $1.10, with other top crypto assets trading in the green at the time of writing.
All market sectors experienced gains, with Layer-2 and Real World Asset (RWA) projects leading at approximately 4%, while other sectors posted gains between 1% and 3%.
While the short-term technical path is constructive, the move’s endurance likely hinges on whether the new revenue models can sustain capital flows and if upcoming legislative action confirms the regulatory shift.
Minutes from the Federal Reserve’s latest meeting reveal a more cautious outlook on inflation, posing a headwind for risk assets like cryptocurrencies.
The number of officials anticipating at least one rate hike by year-end has jumped from zero to nine, while those expecting rate cuts have fallen to just one.
This shift significantly dampens market hopes for near-term monetary easing, a key catalyst for previous crypto bull markets.
Crucially, officials identified the investment boom in Artificial Intelligence infrastructure as a new potential source of demand-driven inflation, alongside geopolitical conflicts and tariffs.
This suggests the “higher for longer” interest rate environment may be extended, reducing the appeal of speculative assets and potentially delaying the flow of new capital into the crypto market.
A U.S. Supreme Court decision expanding presidential authority to replace the heads of independent agencies, including the SEC and CFTC, introduces a significant layer of political risk for the crypto industry.
The ruling means that a change in administration could lead to a rapid, drastic shift in regulatory direction, potentially rewriting or repealing rules established by the current leadership.
This heightens uncertainty and makes it difficult to build long-term strategies based on the current regulatory trajectory.
The increased politicisation of these agencies could lead to regulatory whiplash, making the U.S. digital asset landscape more volatile and unpredictable depending on election outcomes. Crypto Market Falls 2% as US-Iran Tensions Re-ignite Selloffs
