LSK, ARB, ZEC, lead crypto rebound as Bitcoin reclaims $78,000 after Fed hike
- Bitcoin climbed back above $78,000 for a third straight day of gains and altcoins led a broad rebound.
- The advance held despite a Fed rate hike, a BOJ rate hike and the CLARITY Act’s failure in the Senate.
- Analysts read the resilience as signs that the downside risk has already been priced in near a possible market bottom.
Altcoin holders are having a great day Friday as a market-wide bounce has seen major tokens print green over the last 24 hours. Bitcoin also reclaimed $78,000, as the leading crypto brushed off the letdown from the CLARITY Act stalling and the Federal Reserve’s rate hike.
BTC’s return above the $78,000 level capped three straight days of gains, with most of the other tokens in the top 100 by market cap also trading in the green over the last 24 hours. The market capitalization of the total crypto sector climbed 2.55% to roughly $2.68 trillion, per CoinMarketCap.
Which crypto tokens are making gains?
Some of the standout performers over the last 24 hours include Starknet (STRK), Arbitrum (ARB), Uniswap (UNI), Hyperliquid (HYPE), Zcash (ZEC), Solana (SOL) and NEAR.
Over the one-week period, the highest weekly gainers tracked by CoinMarketCap were Lisk (LSK), Arbitrum, GEODNET, NEAR, Zcash and Uniswap.
As Cryptopolitan reported earlier in the day, Arbitrum’s ARB has been on a 167% run over the past month, riding high on tokenized real-world asset inflows momentum. ZEC, on the other hand, pushed toward the $1,500 level after setting up its latest climb with a September 17 short squeeze that wiped out $56.35 million in bearish bets.
The derivatives activity has backed up the spot price move, with cumulative open interest rising by almost 5% to $141.2 billion.
Why the bears are backing off
This rally has come despite serious macro headwinds from the CLARITY Act failing to gather the votes it needs to pass through Congress on Tuesday, which sent Bitcoin into a tailspin below $75,000.
The Fed and the Bank of Japan piled on as the former delivered its first rate hike in more than three years, while the BOJ set its benchmark at its highest level in 31 years.
Add the historical context that September is Bitcoin’s weakest month, BTC holding steady at -1.5% on the month and up about 32% for the quarter, is a major win.
The analyst consensus now is that sellers are exhausted and the metaphoric bottom is already in.
The buying column gained a prominent returning participant, as Kevin O’Leary told The Block at the Avalanche Summit that he is “back in the saddle buying new positions” for the next cycle, while cautioning that he does not expect the CLARITY Act to pass before the midterms.
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FAQs
Why did crypto prices rise this week despite the Fed rate hike?
A softer macro backdrop drove the gains: the 10-year Treasury yield fell back below 5% and oil prices dropped sharply, easing the inflation scare that followed the hike. Analysts also point to seller exhaustion, noting bitcoin barely moved on bad news.
Which altcoins led the rally?
Over 24 hours, HYPE rose more than 11%, NEAR gained 30%, UNI 26% and Starknet 18%. On a weekly basis, CoinMarketCap ranked Lisk the top gainer at 259.7%, followed by Arbitrum at 44.4%, NEAR at 43.3% and Zcash at 40.5%.
What happened with the Clarity Act?
The US crypto market-structure bill secured just 49 votes on Tuesday, short of the 60 needed to advance in the Senate. Bitcoin briefly dipped below $74,887 before quickly stabilizing, suggesting traders had already priced in the risk of failure.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Hannah Collymore
Hannah is a writer and editor with nearly a decade of blog writing and event reporting experience in the crypto space. At Cryptopolitan, Hannah contributes to the news page, reporting and analyzing the latest developments in DeFi, RWA, crypto regulation, AI and frontier tech industries. She graduated from Arcadia university with a degree in Business Administration.
