Bitcoin, ether keep grinding higher as Federal Reserve meeting nears

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Bitcoin (BTC-USD) and ethereum (ETH-USD) are seeing further relief in a move that reflects traders’ widened risk appetite in the cryptocurrency market ahead of next week’s Federal Reserve meeting.

The world’s largest digital token by market cap is jumping 7.7% to $24.03K as of shortly before 10:00 a.m. ET, and ether (ETH-USD) is rising 3.8% to $1.61K over the past 24 hours. Some other major cryptos leading the relief rally include dogecoin (DOGE-USD) +8.6%, cardano (ADA-USD) +5.3% and shiba inu (SHIB-USD) +7.3%.

The crypto market’s partial recovery comes amid more than $500M in ethereum (ETH-USD) short liquidations and nearly $1B in total crypto short liquidations, meaning traders are buying back borrowed crypto after previously betting on price declines, according to a note written by GlobalBlock analyst Marcus Sotiriou.

Traders will be eyeing the Fed’s interest rate decision on July 27. According to the CME FedWatch Tool, markets are pricing in a 66.8% probability of a 75 basis point rate hike, which would be a softer move than what markets expected last week — an 80.3% chance that the Fed will lift its target range by 100 bps.

“The market needs a little more assurance for deceleration in the pace of rate hike by the Fed,” crypto lender Nexo CEO Antoni Trenchev told CNBC. “Nevertheless, a short-term outlook for bitcoin is bullish and it could go as high as around $29k this week,” he added.

Crypto-related stocks are also climbing in early morning trading: Stronghold Digital Mining (SDIG) +26.2%, Galaxy Digital (OTCPK:BRPHF) +14.1%, Coinbase Global (COIN) +5%, Silvergate Capital (SI) +8.3%, Bakkt (BKKT) +6%, Marathon Digital (MARA) +6%.and MicroStrategy (MSTR) +6.2%.

Earlier this week, (July 19) Strike CEO Jack Mallers said bitcoin’s cyclical slump hasn’t changed the token’s fundamentals.