Layer-2 and DeFi tokens lead broad crypto advance as post-Fed hike nerves fade
Cryptocurrency markets experienced a broad rally, led by DeFi and Layer-2 tokens, as investor anxiety regarding recent Federal Reserve rate hikes subsided. Bitcoin climbed above $78,000 while specific ecosystem tokens like Starknet and Arbitrum saw double-digit percentage gains.
Why it matters
The recovery in crypto assets suggests a shift in market sentiment as macroeconomic pressures like inflation and interest rates show signs of stabilization.
Bitcoin BTC $78,223.58 rose above $78,000 during the European morning, adding 2.1% since midnght UTC and 1.9% over the past 24 hours. It’s still 5% below the Sept. 4 monthly high of $82,284 after two weeks of range-bound price action.
While all but two CoinDesk 100 constituents were higher on the day, the focus is on the DeFi Select Index (DFX). That accelerated the fastest, surging by 8.3% since midnight and 16% over the past 24 hours.
Market gains follow a more conducive macro backdrop. The 10-year Treasury yield slipped back under 5% and Brent crude eased below $103 after trading as high as $109 earlier in the week, taking some of the heat out of the inflation scare that followed the rate increase.
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