Fed Chairman Jerome Powell confirmed that the Fed will not raise interest rates for the first time in more than a year. Bitcoin and cryptocurrencies have interestingly withdrawn on this news.
BTC price saw below $25,000 after a long break.
Bitcoin, which exceeded $ 26,000 immediately after the announcement of the interest rate decision, exhibited a strong decline as of 23:00 with the ensuing major regression.
The reason for the decline in BTC is thought to be due to the harsh speech of FED chairman Jerome Powell, despite the interest rates being left unchanged, and signaling two more rate hikes this year.
In addition, Powell said that this year is not suitable for rate cuts and pointed to rate cuts "in a few years".
The BTC price is thought to have dropped abruptly after Powell's hawkish speech.
The Downturn is Deeper in Altcoins
However, when we examine the altcoin side, we see that the regression is even deeper. While BTC has lost 3.33% in the last 24 hours, this rate was 5.38% in Ethereum, 10% in XRP, 4% in Dogecoin and approximately 4.25% in Solana.
Joe DiPasquale, CEO of cryptocurrency asset manager BitBull Capital, said of the recent downturn:
“FED did not change interest rates as expected by the market given the macroeconomic situation. The initial move has been bearish since the Fed indicated that this pause is likely not to last long. From a markets perspective, it looks like we will continue to see consolidation as long as Bitcoin maintains $25,000.”
*Not investment advice.
