Cryptocurrency market capitalization has seen a remarkable increase in the first half of 2023, rising by more than 50%. This is especially impressive considering the US dollar is trading with a mixed tone against its fiat rivals. Optimism is high as Bitcoin, the leading cryptocurrency, holds near the yearly high, having rallied by over 85%.
Ethereum, Litecoin, and Ripple have followed Bitcoin higher, while Dogecoin has been comparatively flat on the year, increasing by only 0.3%. This divergence suggests that investors are concentrating their attention on a few leading cryptocurrencies.
The Federal Reserve’s decision to pause the rate hikes in June has been seen as a positive for the cryptocurrency market, leading to speculation that the current funds rate may be the terminal one for this tightening cycle. If this is the case, it may lead to the US dollar losing ground against its rival fiat currencies and further rallies in Bitcoin and other leading cryptocurrencies.