Crypto On May 5: Market Back In Green After Fed Hikes Rates

Most of the top cryptocurrencies gained after the Federal Reserve announced a 0.5% point hike in interest rates Wednesday.

The global market cap was up 3.75% at $1.80 trillion as of 3.26 a.m. ET, CoinMarketCap data showed.

The Federal Reserve increased the interest rate by half a percentage point, the most aggressive step yet in its fight against inflation which is at a 40-year high. The crypto market's rise is in sync with Wall Street, which closed sharply higher on Wedensday.

Bitcoin rose 3% to $39,563. Ethereum, too, gained 4.13% to $2,930. Barring a slight dip in USD Coin, all of the top 10 tokens traded in the green. Meme cryptos Shiba Inu and Dogecoin too gained.

Apecoin, used to vote on community decisions and other services within the popular Bored Ape Yacht Club (BAYC) ecosystem, surged as high as $17.60 after Tesla's Elon Musk changed his Twitter profile picture to a Bored Ape NFTs collage. APE gained 14.07% in the last 24 hours and was trading at $16.37.

Interestingly, Cardano whales have been busy from the past month, accumulating close to 200 million Cardano worth over $150 million in 5 weeks, according to popular on-chain analyst firm Santiment. The retail interest in Cardano has also spiked in recent weeks, with Investors increasing their ADA balance.

In other news, crypto regulations in India continue to develop at a rapid pace. The latest word on the street is that India’s tax department could potentially raise the taxes deducted at source (TDS) on interest earned by Indian residents on foreign platforms up to 20%. The TDS on crypto transactions is 1% as of date, to be implemented from July 1.

The crypto market is extremely volatile and experts recommend investors not make decisions based on the sudden shift in prices.