The cryptocurrency market is experiencing a notable increase today, driven by several key developments.
With the FOMC meeting of the Federal Reserve held today, cryptocurrency markets are preparing for possible changes in policies. Investors are eagerly awaiting any signals regarding interest rates and the opinions of Jerome Powell. The bill on the structure of the cryptocurrency market will be voted on tomorrow by the United States Senate, adding regulatory uncertainty.
General interest in perpetual contracts has increased by 7.96%, indicating renewed interest in leveraged long positions. Additionally, funding rates have turned positive, further indicating that the market is showing a very bullish outlook.
Other altcoins like Hyperliquid (HYPE) and PIPPIN have experienced explosive growth of 20% and 60%, respectively. This influx of high-risk assets is attracting more capital to the industry, increasing attention towards altcoins.
Gold has set a new record, reaching a spot price of $5,283 on January 28. This increase in the precious metal, driven by the weakness of the US dollar to four-year lows, has helped boost investor confidence in most markets, including cryptocurrencies.
The cryptocurrency market shows signs of recovery this week after a strong correction. The price of Bitcoin surpassed $90,000, Ethereum's price is above $3,000, and XRP's price exceeded $1.90.
These are the three leading cryptocurrencies by market capitalization, approaching important resistance levels, and a solid close could prolong their current upward trend. If the upward trend stays above $1.90, the next resistance is at $2.
If the long-term outlook for Bitcoin remains at the $90,000 support, it could move towards the next resistance level of $92,000. Ethereum, on the other hand, could be gaining momentum if it breaks the daily resistance of $3,020 and closes above $3,100. Other cryptocurrencies like BNB, Solana (SOL), and Dogecoin (DOGE) have also performed well in terms of gains. Additionally, XRP spot ETFs registered high net inflows of $9.16 million, which also contributed to the positive market sentiment.
