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 Hiding Place 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, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Bybit Introduces Bybit Odds, Integrating Prediction Market Analytics

Bybit has launched Bybit Odds, an innovative analytics product designed to integrate prediction market data into its trading ecosystem.

user avatarTando Nkube

Binance Expands Automated Trading Tools for Users

Binance has introduced new Spot Grid and Spot DCA bot support for additional trading pairs, enhancing its spot platform's automation.

user avatarKofi Adjeman

China Launches Investigation into AI Labs for Data Misuse

China has launched an investigation into AI labs DeepSeek and Moonshot AI for allegedly routing sensitive user data to Anthropics servers.

user avatarNguyen Van Long

Lion Group Holding Adds HYPE Tokens to Corporate Treasury

Lion Group Holding has disclosed a corporate treasury position of approximately 195,000 HYPE tokens, marking a significant move in corporate crypto asset holdings.

user avatarSatoshi Nakamura

Zcash ETP Gains Traction Amidst Market Surge

Zcash has seen a remarkable price increase this year, with gains exceeding 2,700%, fueled by the launch of the Zcash exchange-traded product (ETP) by 21Shares, providing a regulated way for investors to gain exposure to Zcash.

user avatarJesper Sørensen

21Shares Launches Europe's First Zcash ETP

21Shares has launched the first Zcash ETP in Europe, available on Euronext Paris and Amsterdam, with a 25% management fee.

user avatarRajesh Kumar

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.