Cryptocurrency, commodities, and stocks prices cheered the second interest rate decision by the Federal Reserve. Floki, the popular meme coin, surged by over 40% in the past 24 hours while Axelar (AXL) and Theta Network soared by over 18%. Other cryptocurrencies like Bitcoin, Solana, and Avalanche joined the surge.
The same trend happened in the stock market as the Dow Jones, Nasdaq 100 and S&P 500 closed at their all-time high. US bond yields and the US dollar index (DXY) retreated sharply as investors embraced a risk-on sentiment.
Some commodity prices also continued soaring. Gold price spiked to another all-time high of $2,222 while crude oil is sitting at its highest point in four months.
Floki Inu, Axelar, and Theta Network surged after the Federal Reserve made a dovish decision. In it, the bank decided to leave interest rates unchanged between 5.25% and 5.50%. These rates are the highest they have been in over two decades.
In the statement, the committee hinted that it was committed to delivering three rate cuts this year. The first cut will happen in June followed by another one in August or September and December.
The dovish bias was notable since it happened at a time when recent economic numbers have sent mixed signals. Data showed that the headline Consumer Price Index (CPI) rose to 3.1% in February while the core CPI soared to 3.8%. These numbers are substantially higher than the Fed’s target of 2.0%.
Therefore, the Fed seems to be prioritising the economic growth, which is showing signs of slowing down. The most recent data revealed that consumer confidence, factory orders, and the unemployment rate were weaker than expected.
Looking ahead, the next catalyst for the FLOKI, Theta, and Axelar tokens will be April’s Bitcoin halving event. As a major event, this one will lead to more Bitcoin gains considering that demand is rising as many investors move to ETFs.
The iShares Bitcoin Trust (IBIT) and the Fidelity Wise Origin Bitcoin (FBTC) ETFs have added over $21 billion in assets in the past two months and the demand may continue rising. Further, Michael Saylor’s MicroStrategy is still buying loads of Bitcoins.
Therefore, there is a likelihood that these tokens will continue rising in the coming months. If this happens, Floki Inu could surge by 26% and retest the YTD high of $0.00030. Axelar’s AXS token could also soar to the YTD high of $2.70 while Theta Network could surge by 27% to $3.80.
Contributors
