Major cryptocurrency tokens were trading higher on Tuesday ahead of the US Federal Reserve’s policy decision tomorrow.

Bitcoin was up 1.94% at $43,409, while Ethereum rose 1.8% to $2,305. Meanwhile, the worldwide cryptocurrency market capitalization increased by 2.3% to roughly $1.67 trillion in the last 24 hours.

Major events, such as the Fed’s interest rate decision and US January unemployment rate statistics, might have an impact on market sentiment in the following days.

If the widely anticipated rate decrease is finally announced, the bull-bear tug of war that has been going on for the past few weeks may finally see the bull emerge victorious.

Bitcoin surpassed $43,000 on optimistic enthusiasm fueled by fading grayscale selling pressure and new bullish wagers. Grayscale’s reduced BTC transfers to exchanges, together with projections for new long positions above $43,000, point to a probable surge to annual highs beyond $50,000.

Positive aspects include dropping GBTC sales, rising US stock markets, and Google’s Bitcoin ETF ad support. However, the impending Fed meeting poses a concern because good US economic data may delay rate reduction, thereby supporting the US currency and dampening crypto markets.

Other prominent altcoins increased in value during today’s exchange. Solana and Cardano gained 6.5% and 7.6%, respectively. Dogecoin, Chainlink, Polygon, and Shiba Inu all saw 2-3% gains. BNB, XRP, Internet Computer, and Avalanche are also up.

Bitcoin, the world’s largest cryptocurrency, has seen its market capitalization increase to $850 billion in the last 24 hours. According to CoinMarketCap, Bitcoin presently has a dominance of 51.15%. Bitcoin volume increased by 42% in the last 24 hours, reaching $22.4 billion.

To continue its pace toward $45,000, BTC must first breach and hold $43,500. We foresee a surge higher in the coming days, with Bitcoin reaching beyond $44,000 during this rally.

Bitcoin has been on a sustained rise for the previous week, gaining more than 12% while maintaining the trend line support of $38,500. Analysts estimate that this increase is largely owing to the Fed’s expectation to continue its rate pause, which will be disclosed this week.