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

by Giorgi Kostiuk

a year 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.

Rewards

More rewards

Discover enhanced rewards on our social media.

Other news

Solana Faces Significant Selloff Amid Institutional Caution

Solana has experienced a sharp selloff, leading to a fragile market condition as it approaches a key demand zone.

Maya Lundqvist15 minutes ago

Ethereum Price Falls Below Critical Support Level.

Ethereum's price has fallen below the crucial $2,000 mark due to significant selling pressure from large and small investors.

Leo van der Veenan hour ago

Analysts Maintain Strong Buy Rating on Nvidia Amid Market Volatility

Analysts express confidence in Nvidia's potential in the AI sector despite recent market volatility, maintaining a strong Buy rating with price targets from 220 to 320.