The total market valuation for crypto currencies rose by 4.52% to $1.08 trillion today, evidence that the ecosystem supporting digital currencies is now experiencing growth. The price of Bitcoin (BTC) increased by 3.49% to $23797 today, making it the leader of the positive momentum in the market, and many other crypto currencies are following the trend.
Bitcoin's price has been moving in a perfect direction overall. Over the previous two weeks, the most prominent crypto currency has seen a gain of 15%, and in nearly the past month, its value has increased by over 43%.
Since the previous year was when the crypto winter reached its full expression in the majority of risk assets, including Bitcoin, the currency has recovered some of the losses it accumulated during that period and is currently trading at a higher price.
According to statistics provided by Coingecko, the value of the cryptocurrency has decreased by 38.6% since the end of the year, which compares well to the more than 65% YoY loss it recorded at that time. The vast majority of other cryptocurrencies have followed Bitcoin's lead and are rising in value.
In the last 24 hours, the Ethereum (ETH) has increased by 5.5%, reaching $1,675.04.
Other crypto currencies, such as Solana (SOL), Avalanche (AVAX), and Cardano (ADA), are also on the rise, reflecting an overall market push for digital currencies.
Several prominent regulatory authorities, including the Reserve Bank of India, took a favorable attitude toward developing crypto currencies, but each of their statements included its distinctive nuance.
Officials from the RBI have been lobbying for worldwide cooperation in the regulation of crypto currencies in to achieve the result that is sought.
According to ZebPay Trade Desk, Finance Minister Nirmala Sitharaman did not mention crypto currencies, virtual or digital assets, blockchain, or central bank digital currencies when she delivered the budget for the Indian economy today.
"Since the beginning of this year, India has maintained a neutral stance towards a crypto law, maintaining that crypto regulation cannot be successful without global coordination, which India views as a priority given its ability to lead the G-20."
Effect of Fed's Interest Rate Hike
The Federal Reserve of the United States took a dovish position after its two-day policy meeting on Wednesday, and as a result, interest rates were raised by 25 basis points. This contributed to the growth of Bitcoin and other alternative cryptocurrencies. This relatively modest increase is in line with what the experts had anticipated.
Market makers are responsible for exercising extreme prudence concerning the Federal Reserve's anti-inflation efforts, despite investors being optimistic that the Fed's shift is a good move for the crypto environment and the larger financial ecosystem.
Notably, the Federal Reserve needs to see evidence that its previous aggressive interest rate rises have affected the economy before it resumes its strict approach.
Higher inflation data as of December came in at 6.5%, which is significantly lower than the highs recorded last year, but it is still much beyond the goal range of 2-4% that the Federal Reserve has set for it. The market is taking advantage of the optimistic sentiment prevalent in the broader financial world.