Broader cryptocurrencies traded higher on Thursday after the US Federal Reserve kept its benchmark interest rates unchanged. The crypto market was largely encouraged by a weaker dollar. The dollar weakened as Fed Chair Jerome Powell indicated a possible end of the rate hiking cycle. 

The dollar index slid over 0.5% in Asian trade on Thursday. The largest cryptocurrency by market capital, Bitcoin, was trading 2.73% higher at $35,402.40. The coin hit an intraday high mark of $35,902.02, its highest level since May 2022. 

The capitalisation of the entire global cryptocurrency market surged to over $1.3 trillion in the last 24 hours. The market cap of Bitcoin surged to $689 billion. Solana was the top gainer among other crypto tokens, rising over 12%. In contrast, Ethereum, the second-largest cryptocurrency, was up 1.68% at $1,8334.89.

Following the two-day policy meeting, the Federal Reserve left interest rates unchanged as officials grappled to determine whether financial conditions were already tight enough to control inflation or whether further curbs were necessary for an economy that continues to outperform expectations.

Fed Chair Jerome Powell still left the door open for one more rate hike this year while also acknowledging that monetary conditions had tightened substantially in recent months. Markets took this as a signal that the Fed could potentially begin cutting rates by mid-2024.