Bitcoin and Solana Prices Continue Bullish Momentum Amid Expected US Fed Rate Hike in December

7:07 am, Thu, 2 November 23

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Cryptocurrency market responds positively to the Fed’s decision on interest rates.

  • Bitcoin ($BTC) and Solana ($SOL) prices went up in the cryptocurrency market as the Federal Reserve decided to keep current interest rates.
  • Despite ongoing bankruptcy proceedings involving crypto exchange FTX, Solana’s price shows resilience.
  • The Federal Reserve might raise rates in December, but the crypto market remains optimistic.

The price of Bitcoin ($BTC) and Solana ($SOL) went up as the US Federal Reserve decided to keep the interest rate steady between the range of 5.25% to 5.50%. The decision, announced in late October 2023, caused big gains for certain cryptocurrencies. BTC and SOL became the crypto frontrunners.

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SOL caught the public’s eye due to its big daily gains among the top ten cryptocurrencies. SOL pump began in the middle of FTX’s bankruptcy proceedings. FTX is a crypto exchange connected to the Solana Foundation. Even though FTX’s Sam Bankman-Fried faced legal trouble, SOL’s upward price momentum remained firm.

VanEck, a global investment management firm, forecasted a promising future for SOL. By 2030, the company expects SOL’s price to rise to $3,200, an expected increase of over eighty times.

According to VenEck, Solana already features a data throughput capable of surpassing all existing blockchains. Its data capacity even outshines most blockchains that are still in the planning stages, they added.

Source: VanEck’s Base, Bear, Bull Case: Solana Valuation by 2030

The upcoming significant software upgrade for Solana, known as the Firedancer upgrade, aims to amplify its current capacity tenfold. Although it remains uncertain how much data the next groundbreaking application will require for blockchain processing, VanEck anticipates that activities from over 100 million users on-chain could stretch Solana’s blockchain scalability to its boundaries.

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Federal Reserve’s Stance on Rate Hike

In the third quarter of 2023, the Federal Reserve recognized the strong growth of the US economy. It expected that interest rates would stay the same, but still warned that the Fed might increase them in the future. The aim behind such a move would be to steer inflation towards the 2% target.

The price of BTC went up a lot as well with the Federal Reserve deciding to keep the current interest rates for now. However, Jerome Powell, Fed Chair, still warned about a possible rate hike in December. Despite this, both cryptocurrency and stock markets saw big gains.

People are talking about the Federal Reserve and Powell’s speech. Most think that the central bank might make its policy stricter again in the months ahead to arrest inflation. The U.S. Bureau of Economic Analysis reported that in September 2023, the PCE price index increased by 0.4 percent from the previous month.

According to the CME FedWatch Tool, the market predicts that interest rates will go up during the December 2023 Federal Reserve Open Market Committee (FOMC) meeting. The tool recorded a 2% increase in the probability of a rate hike to the 5.50% to 5.75% range. As the December 12-13, 2023 meeting gets closer, worries about a possible increase may grow.


The cryptocurrency market reacted positively to the Federal Reserve’s decision. This shows how macroeconomic policies affect the perception of digital assets. Nevertheless, investors remain cautiously optimistic about cryptocurrencies like BTC and SOL, despite uncertainties. Investors and market participants have to keep a close eye on what happens before the December FOMC meeting. These changes could be important for the industry.

Read Next: Crypto Bull Market May Experience a Slowdown, Suggests Former Ark Invest Analyst

Disclosure: The author currently holds positions in Solana (SOL).

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