Bitcoin (BTC) is back in the green after a rough start to the week. The top cryptocurrency added nearly 3% in the past 24 hours, reclaiming lost ground after an 8% plunge earlier this week. The U.S. Federal Open Market Committee (FOMC) meeting helped shift market sentiment, giving traders confidence to buy the dip.
FOMC Meeting Keeps Rates Steady
The FOMC, led by Jerome Powell, decided to keep interest rates steady at 4.25%-4.50%. This marks the first policy decision under President Trump’s administration. Powell emphasized patience, stating, “We do not need to be in a hurry to adjust our policy stance.”
Interest rates play a crucial role in Bitcoin’s price movements. Higher rates can strengthen the dollar, making traditional investments more attractive. Lower rates, on the other hand, tend to boost Bitcoin as investors seek alternatives.
Crypto Market Gains Momentum
Bitcoin hovered around $105,000 in European morning trading on Thursday. Major altcoins followed BTC’s lead, with Cardano (ADA), Dogecoin (DOGE), XRP, and Ethereum (ETH) climbing by 3%. Solana (SOL) outperformed the pack, jumping 4%.
The broader crypto market also saw gains, with the CoinDesk 20 index rising 2.8%. This suggests renewed investor confidence following the Fed’s decision.
Litecoin (LTC) Skyrockets 14%
While Bitcoin and altcoins posted moderate gains, Litecoin (LTC) stole the show. The coin surged 14% after the U.S. Securities and Exchange Commission (SEC) acknowledged a 19b-4 filing for a spot Litecoin ETF. Canary Capital’s application marks the first ETF filing for an altcoin beyond Bitcoin and Ethereum.
Bloomberg Intelligence analyst Eric Balchunas highlighted the importance of this milestone. “First altcoin 19b-4 to be acknowledged, rest were told to withdraw by [SEC Chair] Gensler’s SEC,” he said on X (formerly Twitter). The SEC’s acknowledgment starts a public comment period, with a final decision expected within 240 days.
What’s Next for Bitcoin and Altcoins?
The crypto market remains sensitive to macroeconomic factors, including interest rate policies and ETF developments. If the Litecoin ETF progresses, it could pave the way for other altcoin ETFs, fueling broader adoption.
For now, Bitcoin’s recovery and Litecoin’s rally signal renewed optimism. Investors are watching closely to see if BTC can sustain its momentum and whether Litecoin’s ETF journey will spark further price gains.
Stay tuned for more updates as the crypto market continues to evolve!