In a remarkable turn of events, altcoins experienced a significant rally on Thursday, largely fueled by the Federal Reserve's recent decision to cut interest rates. Leading the charge were Avalanche (AVAX) and Hyperliquid (HYPE), both of which saw impressive gains in a market eager for positive news. According to analysts cited in the report, the outlook is promising.
Avalanche and Hyperliquid Surge
Avalanche (AVAX) surged by an astonishing 101%, reaching a price of 3,259, while Hyperliquid (HYPE) followed closely with a 72% increase to 5,843 within just 24 hours. This upward momentum was not limited to these two cryptocurrencies; other major altcoins also enjoyed substantial gains.
- Dogecoin (DOGE) rose by 54% to 0.27
- Solana (SOL) climbed 45% to 2.44
- Cardano (ADA) saw a 43% increase to 0.90
Bitcoin and Ethereum Performance
Meanwhile, Bitcoin (BTC) managed to hold its ground above 117,000, posting a modest gain of 0.3%, while Ethereum (ETH) recorded a 2.1% increase, reaching 4,588. The rally comes in the wake of the Federal Reserve's widely anticipated quarter-point rate cut, which has lowered the federal funds rate to a range of 4.25% to 4.50%.
Analysts Weigh In
Analysts attribute the remarkable performance of AVAX to the announcement of a $1 billion Digital Asset Treasury plan, with the Avalanche Foundation reportedly in discussions to raise funds through a Nasdaq-listed firm. This strategic move has contributed to the positive market sentiment.
Market Caution Ahead
However, experts caution that while the current enthusiasm is palpable, the effects of the rate cut may be short-lived, and potential volatility could loom on the horizon as the market adjusts to the new economic landscape.
Currently, the cryptocurrency market remains optimistic as Bonk (BONK) continues to show potential for growth, with analysts highlighting the impact of expected interest rate cuts. For further details on market reactions to the Federal Reserve's rate cut, read the full story here.
