The Federal Reserve’s decision to cut interest rates unexpectedly impacted the cryptocurrency market, causing significant price fluctuations.
Bitcoin and Altcoins Lose Value
Following the rate cut, Bitcoin lost 4% and traded at $100,880. The intraday low and high were recorded at $98,874 and $105,389, respectively. The market capitalization dropped to $2 trillion, while trading volume reached around $100 billion. The market dominance was recorded at 57.12%. Ethereum also experienced losses, decreasing by 6% to $3,652, with 24-hour low and high at $3,543 and $3,902, respectively. Ethereum’s total market capitalization was estimated at $440 billion, with a daily trading volume of $52 billion.
Trading Volume Increases While Market Capitalization Declines
The overall market capitalization fell by 5% to $3.44 trillion. However, trading volume increased by 40%, reaching $251 billion, which indicates a high level of trading activity in the market. The Fear and Greed Index remained stable at 69, suggesting that investors’ risk appetite remains high. According to a report by SoSo Value, there was an outflow of $84 million from Bitcoin ETFs on Wednesday, led by Grayscale with an outflow of $35 million, followed by Invesco with $25 million. Data from BlackRock has yet to be disclosed.
Volatility and Experts’ Forecasts
The cryptocurrency market is experiencing volatility following the Fed’s interest rate cut. Bitcoin’s drop below $100,000, the decline in altcoins, and the rising trading volume are noteworthy. Experts predict that future market movements will depend on Fed policies and project developments.
The Federal Reserve’s interest rate cut has led to significant changes in cryptocurrency markets. Ongoing volatility will depend on further decisions by the Fed and the market’s response to them.
