Simply put
- The cryptocurrency market has seen significant gains following the Federal Reserve’s latest interest rate cuts.
- Analysts note that Hyperliquid’s USDH Stablecoin is drawing in liquidity from various institutions.
- Currently, market momentum is heavily influenced by specific project developments, which are causing altcoins to be more volatile compared to Bitcoin, according to expert insights.
On Thursday, the altcoin rally was largely driven by Avax and some high-profile assets, as digital currencies reacted positively to the Fed’s recent rate adjustments along with specific project progress.
Avax, after experiencing a loss of $32.59 at 10.1%, rebounded by 7.2% in the last day, reaching $58.43, as per Coingecko data.
Other notable altcoins also surged: Dogecoin (DOGE) climbed by 5.4% to $0.27, Solana (SOL) increased by 4.5% to $244, and Cardano (ADA) saw a rise of 4.3%, hitting $0.90.
Bitcoin (BTC) managed to hold above $117,000 with a modest gain of 0.3%, while Ethereum (ETH) rose by 2.1% to $4,588.
This recent rally coincides with the Fed’s anticipated quarterly rate cut, which lowered the federal funding rates to a range of 4.25% to 4.50%.
It appears that Bitcoin and other leading digital currencies are mostly trading steadily, as investors quickly adjusted prices following the Fed’s announcements.
“While the Fed’s rate cut has boosted overall risk appetite, Avax’s strong performance seems to be linked to Avalanche’s announcement regarding its $1 billion digital asset funding initiative,” experts highlighted.
The Avalanche Foundation is actively consulting to secure $1 billion through a SPAC-backed company listed on NASDAQ, with proceeds earmarked for Avax repurchases.
Bitwise has also submitted documents for an Avax ETF, utilizing Coinbase to manage digital assets and enhancing the token’s potential for institutional uptake.
A market analyst noted that the recent rally could potentially be sustained, as the major risk related to FOMC has been addressed.
Investment expert Ganesh Mahidar mentioned that “USDH attracts liquidity from various institutions,” emphasizing that its custody and user experience are on par with that of major exchanges.
“From a macro perspective, the news about the rate cut certainly influenced the market,” he said, though it might be “temporary” since it has been factored into pricing for months.
According to Nic Puckrin of Coin Bureau, the 25 basis point cut signals a shift after a prolonged period of inflation concerns and weak labor statistics—though the magnitude of the cuts is still under discussion.
“There’s a lot of optimism, but we might see ‘selling news’ pullbacks,” he added, while also noting that meme coins are particularly susceptible to rapid volatility.
