Crypto update: Bitcoin price nears $86,000 after Fed rate decision, Solana ETF launch, and more

Crypto update: The price of Bitcoin neared the $86,000 level on March 20 after United States Federal Reserve's rate decision sent markets soaring.

The rise was supported by the US Fed decision and news that the US Securities and Exchange Commission (US SEC) had officially dropped its lawsuit against Ripple Labs.

Crypto Price Today: Bitcoin, Ether, Solana, Tether

During the early hours today, on March 20, Bitcoin briefly touched the $87,299 level at 5.50 am, but soon settled close below $86,000.

At 10.10 am, the world's biggest cryptocurrency was at $85,596.80 — up 3.18 per cent from the previous day, according to data on Coinmarketcap. The market capitalisation of Bitcoin was at $1.69 trillion, with trading volume recorded was at $35.82 billion over the past 24 hours.

The second biggest cryptocurrency, Ether also saw a rise, trading at $2,020.95 — up 4.51 per cent, according to CoinMarketCap data. The token's market cap is at $243.78 billion, with trading volume of $20.26 billion.

Stablecoin Tether, linked to the US Dollar, remained steady on March 20, at $1 with market cap of $143.66 billion and trading volume of $78.91 billion, CoinMarketCap showed.

Further, Solana token, which will see two linked exchange-traded funds (ETFs) jumped 5.69 per cent to $133.09, with market cap of $67.9 billion and trade volume of $3.64 billion, as per CoinMarketCap data.

Crypto Updates: From Solana ETF, to SEC Lawsuit — What's New?

Florida-based Volatility Shares LLC, is debuting the first ever Solana-linked ETFs on March 20, Bloomberg reported.

The ETFs are — Volatility Shares Solana ETF (ticker SOLZ) which will track Solana futures; and the Volatility Shares 2X Solana ETF (SOLT) which will offer twice the leveraged exposure. SOLZ and SOLT will carry expense ratios of 0.95% and 1.85 per cent, respectively, the report added.

Meanwhile, Ripple Labs on March 19 said that the US SEC had dropped its appeal against the company, Reuters reported. The watchdog was appealing a July 2023 decision by Manhattan District Judge the XRP token sold by Ripple on public exchanges did not meet the legal definition of a security. In a post on X, Ripple CEO Brad Garlinghouse called the end of the SEC appeal a “resounding victory” and “long overdue surrender”.

Bitcoin Rise: What Do Experts Say?

Avinash Shekhar, Co-Founder & CEO, Pi42 noted that Bitcoin and the overall crypto space continue their rebound after the Fed maintained interest rates unchanged.

“Investors expect an all-time high in Q2, driven by dovish cues from Jerome Powell and increased institutional demand. Bitcoin Whale accumulation rose by a whopping $13 billion over the course of three days, demonstrating robust investor sentiment,” Shekhar noted.

He added that net inflows went into positive territory, accounting for a change in sentiment as Ethereum and Dogecoin also recovered. “As liquidity rises and macroeconomic fundamentals are in sympathy, the universe of crypto is set for further upside. The coming two months can be decisive in shaping the path of Bitcoin as it deals with bettering fundamentals and increasing investor appetite.” Shekhar felt.

According to the CoinSwitch Markets Desk, “Bitcoin experienced a modest increase of nearly 4 per cent, trading at approximately $86,000. Ethereum also saw gains, rising 5 per cent to around $2,031.”

It noted the following developments that had an impact on crypto prices:

• In a significant regulatory shift, the US SEC officially dropped its lawsuit against Ripple Labs. This decision led to a 10 per cent surge in XRP's price, reaching nearly $2.5.
• Two exchange-traded funds (ETFs) tracking futures in Solana are coming on the market this week.
• Traditional financial markets responded positively to the Federal Reserve's decision to maintain interest rates, with the S&P 500 gaining nearly 1 per cent.

(With inputs from Agencies)

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