The ongoing conversations about the interest hike, the situation about US loans, and the crypto prices have been undergoing a proportional effect every now and then, which has kept the finance sector busy with their way ahead about various matters. The recent being Bitcoin seeing a steep 4% plunge in its value soon after the Federal Reserve pressed pause on interest rates.
The value of the biggest crypto asset by market cap has fallen below its $25,000 mark on June 15, 2023, soon after the Fed released its announcement amid another happening week for the crypto industry. The dip is a first for BTC since March 17, 2023.
Additional Read: Bitcoin Price Prediction 2023
Source: TradingView
As per the data from TradingView, in a span of about 30 minutes on June 15, the price of Bitcoin saw a dip of 4% from $25,867 to $24,819. At the time of writing, the value of Bitcoin saw a surge and is now holding just above the $25,000 mark.
A little recap on the crypto market, during the past week, the value of Bitcoin had been staying strong around the $26,000 mark as the market came face to face with the SEC’s legal action against two of the most famous crypto exchanges, i.e., Coinbase and Binance. Tagging along the legal action, there was an increasing macroeconomic uncertainty about the interest rate signals that had been a long time coming from the United States Federal Reserve.
Given the ongoing conversations on the topic, the market was unanimously expecting the announcement to have news on a rate pause. However, on the contrary, the Federal Open Markets Committee statement gave the idea that there might be further rate hikes in the coming future. A step that many take as a typical blow to an investor’s excitement for engaging in risk assets like crypto. Following this, the BTC value also saw a dip.
According to Josh Gilbert, the eToro Market Analyst, “Much of the positivity we’ve seen from risk assets this year, including Bitcoin, is built on the expectation that inflation will fall and interest rates will peak, and then begin to be cut. Inflation is moving in the right direction but the comments from Jerome Powell signify that rates could stay higher for longer, which would put Bitcoin on the back foot.”
There have been other crypto assets that saw a shift in their prices right after the announcement. Some of them are Ether, Cardano, Polygon, and Solana.
Read More: Bitcoin Halving 2024
Source: CoinDesk
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