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

Clarity Act Debate Intensifies Concerns Over XRP and RLUSD

The controversy surrounding Ripple and RLUSD is linked to the Clarity Act and digital asset legislation in the U.S.

Satoshi Nakamura14 minutes ago

Ripple, XRP, and RLUSD Face Banking Industry Opposition

A controversy has emerged as crypto commentator Pumpius claims that major banking groups are lobbying against legislation that could strengthen Ripple's stablecoin ecosystem, raising concerns about the impact on traditional bank deposits.

Jesper Sørensen14 minutes ago

Ric Edelman Proposes New 80/20 Investment Strategy for Retirement

Ric Edelman proposes a new 80/20 investment strategy for retirement, emphasizing the importance of keeping 80% in equities and growth assets, including at least 10% in cryptocurrencies.