FED Rate Cut: Bitcoin and Altcoins Decline After Powell's Remarks

user avatar

by Giorgi Kostiuk

2 years ago

Last night, the FED announced a 25 basis point rate cut as expected. However, Jerome Powell's statements led to a decline in Bitcoin and altcoins.

Market Reaction to FED Decision

Following the rate cut announcement, Bitcoin fell below $100,000 but later rebounded. Altcoins like XRP, Dogecoin (DOGE), and Solana (SOL) saw declines of 5.5%, while BNB and Ethereum (ETH) experienced smaller drops.

Jerome Powell's Statements

Jerome Powell stated that the FED does not plan to participate in government plans to create a Bitcoin reserve, which contributed to the market downturn.

That's the kind of thing Congress should consider, but we're not planning to amend the law.

Liquidations and Impact on Crypto Investors

According to Coinglass, $780 million was liquidated in leveraged transactions in the last 24 hours, with the largest liquidation in an ETH/USDT transaction on Binance worth $7.10 million. Analyst Nick Ruck noted Powell's remarks as the main reason for the decline.

The cryptocurrency market reacted strongly to Jerome Powell's comments, posing potential challenges to further price growth. Nevertheless, a central bank rate cut is typically seen as a positive signal for economic assets.

Tier I

Sector: #18291

Sealed Cache Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, caches will be stored in your inventory and can be opened with Keys.

Other news

Nvidia Announces Major Investment in OpenAI's AI Data Centers

chest

Nvidia plans to invest up to $105 billion to assist OpenAI in developing new AI data centers, securing significant computing capacity.

user avatarLucas Weissmann

Ethereum Developers Propose Changes for Privacy Pools

chest

Ethereum developers are considering proposals for privacy pools to pay their own transaction fees, focusing on Frame Transactions and ForkChoice Enforced Inclusion Lists for the 2027 Hegot upgrade.

user avatarEmily Carter

SpaceX's Historic IPO and Billionaire Backing

chest

SpaceX's IPO in June saw its stock price initially soar but has since faced volatility, with significant investments from billionaires.

user avatarTomas Novak

Strategy Halts Bitcoin Transactions for the Week

chest

Strategy did not engage in any Bitcoin purchases or sales last week, maintaining its holdings at 840,447 BTC.

user avatarKaterina Papadopoulou

Fake Downloads of The Odyssey Spread Lumma Stealer Malware

chest

Security firm Bitdefender warns that pirated copies of The Odyssey are circulating with malware designed to steal cryptocurrency wallets.

user avatarMaya Lundqvist

Shiba Inu SHIB Gains Momentum with New Listings and Adoption

chest

Shiba Inu SHIB has been listed on the Australian exchange FameEX and is now usable at Dubai Duty Free airport stores, marking significant adoption milestones.

user avatarLeo van der Veen

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.