Bitcoin showcases a market surge to 61.2% amid declining altcoin confidence, triggered by inflation and Fed decisions.
What Derailed the Altcoin Rally?
The anticipated recovery of altcoins faced setbacks due to strong employment reports in the U.S. and the Fed's decision to maintain interest rates. This led investors to shift focus to the more stable Bitcoin.
How Is Inflation Impacting Cryptocurrency Trends?
Despite the Consumer Price Index for February showing a slowdown at 2.8%, market optimism didn't increase. The volatility of altcoins compared to Bitcoin in response to economic conditions has led to their recent decline, with Ethereum and Solana experiencing a 30% drop on average over the past three months.
Future Projections
Recent Fed decisions significantly influenced market dynamics, causing sharp shifts in Bitcoin’s value. Analysts predict that if inflation continues to decrease, Bitcoin may reach $90,000, while altcoins will require clearer guidance from the Fed to effectively bounce back.
Bitcoin serves as a safe haven amidst the instability caused by economic changes and Fed decisions, while altcoins continue to lose ground.
