Tokens of dogecoin (DOGE) and solana (SOL) rose as much as 16% in the past 24 hours to lead gains among major cryptocurrencies<\/a> amid a broader market recovery.<\/p>\n Crypto<\/a> market capitalization increased some 4.5% after sliding under $1 trillion earlier this week and touching levels previously seen in early 2021. Bitcoin rebounded to the $21,000 level after a dip to just over $20,000.<\/p>\n Bitcoin<\/a> reversed Wednesday\u2019s decline even as U.S. Federal Reserve Chair Jerome Powell announced a 75 basis-point interest rate increase, the biggest in over 28 years. The move is part of the Fed’s effort to bring down inflation. The Fed also said it will continue to reduce the size of its balance sheet at the rate announced in May.<\/p>\n A run in bitcoin and positive sentiment in the broader market saw prices of major cryptocurrencies increase. Ether (ETH) rose 11%, Polkadot\u2019s DOT added 15%, while Cardano\u2019s ADA and XRP rose some 7%, data from CoinGecko show.<\/p>\n Major cryptocurrencies gained in the past 24 hours amid a run in broader markets. (CoinGecko)<\/small><\/p>\n Still, some analysts remain skeptical about a sustained rally and said possible contagion risks from within the crypto industry \u2013 such as troubles at crypto lender Celsius and crypto fund Three Arrows Capital facing possible insolvency \u2013 could add to selling pressure.<\/p>\n \u201cThe \u201cdon\u2019t fight the Fed\u201d mantra has never been more relevant and volatility is anything but a surprise on the days of the Federal Reserve policy announcements,\u201d Mikkel Morch, executive director at crypto fund ARK36, said in an email. \u201cIt seems that last week\u2019s CPI print and subsequent comments by the Fed members already spooked investors so much that by the time of the actual meeting, a 75 basis point rate hike was already largely priced in.\u201d<\/p>\n![\"Chart\"](\"https:\/\/editorial.fxstreet.com\/miscelaneous\/Chart-637909753932893183.png\")
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