- Crypto markets rise as FOMC holds rates steady, with investors eyeing a possible 41% market cap surge.
- A descending channel pattern signals a key resistance test, with multiple breakout attempts hinting at bullish momentum.
- Powell’s comments link crypto and equities, reinforcing market confidence despite economic growth projections dropping to 1.7%.
According to Santiment, the Federal Open Market Committee (FOMC) has left interest rates unchanged, sparking positive sentiment in cryptocurrency and equity markets. Jerome Powell confirmed expectations of two rate cuts later this year.
However, economic growth projections have dropped from 2.1% to 1.7%, reflecting ongoing inflationary pressures. Additionally, Powell stated that tariffs could delay inflation reduction efforts. While the Fed acknowledged a slightly higher recession probability, investors have responded with renewed confidence.
Market Momentum Builds After Key Announcement
Following Powell’s statements, the cryptocurrency market, excluding Bitcoin and Ethereum, showed signs of strength. A recent TradingView analysis highlights a descending channel pattern. The market has consistently formed lower highs and lower lows, reflecting an extended downtrend. However, a bounce from the lower trendline suggests increasing buying pressure.
The total market cap stands at $823.7 billion, steadily approaching upper resistance. A breakout above this level could signal a bullish trend reversal. Analysts project a potential 41.05% gain, adding $349.9 billion in market value.
Technical Indicators Suggest Possible Breakout
Analyst Captain Faibik illustrates a clear descending channel, with parallel trendlines guiding price action. The market has respected both resistance and support levels throughout this cycle. Moreover, multiple breakout attempts indicate mounting buying momentum. If the market surpasses resistance, bullish investors may push prices higher. The projected price target falls within the green zone on the chart, reinforcing optimism.
Santiment highlights the increasing correlation between cryptocurrencies and traditional equities. Powell’s comments reinforce this trend, suggesting crypto markets may mirror stock market movements. However, individual altcoins remain highly volatile, driven by independent market factors.
