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

Bitcoin Market Dynamics Shift as Institutional Investors Gain Influence

A new analysis by top analyst Darkfost highlights the evolving dynamics of Bitcoin trading, emphasizing the impact of institutional investors on market behavior.

Zainab Kamara9 minutes ago

Fairshake PAC Holds $193 Million as It Influences Political Campaigns

Fairshake PAC, a powerful political action committee in the crypto industry, holds $193 million to influence political campaigns, notably supporting Indiana Republican James Baird in his primary election.

Son Min-hoan hour ago

BNB Consolidates as Market Tests Trend Continuation

BNB is currently trading around 650, stabilizing after a sharp rejection from the 1,000-1,100 region, indicating a potential shift in market structure.

Ayman Ben Youssef2 hours ago

Eric Trump anticipates that Bitcoin might hit $1 million.

At Consensus Miami 2026, Eric Trump predicted that Bitcoin could reach $1 million, emphasizing the US's leadership in the cryptocurrency market and the growing acceptance of digital assets.