Fed Rate Cuts: The Santa Claus rally in the altcoin market is likely to continue going ahead into 2024 with analysts calling for buying the dips. PromotedAd $PIKA – Fastest-growing GameFi token. Join the Presale Now! Pikamoon ($PIKA) – Join the Presale Now! By Bhushan Akolkar 41 mins ago Updated 10 mins ago
During Tuesday’s FOMC meeting, the U.S. Federal Reserve announced that it would be keeping its interest rate unchanged for the third consecutive time. This led into a sharp surge in the broader cryptocurrency market with Bitcoin (BTC) price shooting by 4.5% and currently trading around $42,700 levels. The Altcoin market has also joined the party!
Altcoin Market Rally
After facing some selling pressure earlier this week, the altcoin market continues to rally amid the positive Fed commentary. The Ethereum (ETH) price is up by 3.75% trading at $2,250 level while others like Solana (SOL), Avalanche (AVAX) and Cardano (ADA) have registered even higher price rallies.
In the latest Federal Open Market Committee (FOMC) announcement, the Federal Reserve declared a decision to maintain current interest rates. The unexpected rapid decline in inflation throughout the year has led officials to revise their projections.
A consensus among most officials anticipates three rate cuts in 2024 as part of an effort to align inflation with the 2% target. Fed Governor Christopher Waller went so far as to suggest the theoretical possibility of initiating interest rate cuts in the spring, contingent on favorable inflation performance.
However, these three rate cuts are still fewer than the five envisioned by many analysts on Wall Street. The limited number of anticipated rate cuts in 2024, potentially commencing in the latter part of the year, implies that officials believe maintaining elevated borrowing rates will be necessary through most of the upcoming year to continue curbing spending and inflation.
Best Crypto Exchanges and Apps September 2024 Must Read Top Meme Coins to Buy Now: What You Need to Know Must Read Top 10 Web3 Games To Explore In 2024; Here List Must Read
The Santa Claus Rally or Buy On Dips Market?
Most analysts expect the crypto market to continue with the Santa Claus rally moving into Christmas and the new year 2024. Cryptocurrency analyst Michael van de Poppe shared his insights on the Federal Open Market Committee (FOMC), stating that it has concluded with a dovish stance and a probable indication of future rate cuts.
He noted a risk-off sentiment for Bitcoin before the FOMC event, followed by a rebound, expressing optimism for a continued upward trend. Van de Poppe outlined a target range of $47,000 to $50,000 for Bitcoin during this pre-spot ETF phase.
In the current market phase, it is advisable to consider buying the dips for both Altcoins and Bitcoin. The market is deemed significantly undervalued, and there’s a potential for Ethereum to gain momentum in the upcoming months, he added.
