The US Federal Reserve’s announcement of a 25 basis point interest rate increase on February 1st had a positive effect on the cryptocurrency market, with Bitcoin (BTC) spiking to its highest price level in over five months. BTC closed its best January since 2013, with a monthly increase of almost 40%. Following the announcement, BTC first dipped below $23,000 before shooting up to $24,350. This pushed its market cap to $460 billion and its dominance over the altcoins to 42.2%.
Altcoins also experienced a surge in value, with Ethereum (ETH) soaring to $1,700 and Binance Coin (BNB) reaching $330. Other altcoins such as Cardano, OKB, Solana, Polkadot, Uniswap, Litecoin, and Shiba Inu also saw significant gains. Polygon and Avalanche were the two with the most impressive daily gains of 14% and 15% respectively. The total crypto market cap has also increased by over $30 billion, putting it close to $1.1 trillion.