Bitcoin and other crypto prices down sharply after hawkish Fed outlook

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Bitcoin fell further from its recent range after the Fed signaled higher interest rates were ahead. The time of dreams

Bitcoin and other cryptocurrencies fell on Thursday after the Federal Reserve signaled higher interest rates, even after suspending its hikes campaign this month.

The price of Bitcoin has fallen 4.1% in the past 24 hours to around $24,880, remaining well below the $26,000 and $27,000 range that has dominated for much of the period since. that the largest digital asset hit a 10-month high above $30,000 in April.

The Fed’s aggressive rate hikes since March of last year have undermined high-risk assets such as cryptocurrencies. Hopes that the cycle had peaked and that rate cuts could come into play for the foreseeable future were effectively dashed by Fed Chairman Jerome Powell. The Fed now expects two more quarter-point hikes this year and no cuts, according to projections.

Once the penny fell, more upside is likely, and was in a higher rate environment for longer, Bitcoin lost its grip, said Antoni Trenchev, managing partner at Nexo. Bitcoin looks nervously at the lows of $20,000. It will be some time before this torrid period for crypto explodes.

Other cryptocurrencies were also down. Ethereum, the second-largest coin, plunged 6.4%. Cardano lost 7.2%, Polygon fell 6.7%, Dogecoin fell 1.5% and Shiba Inu fell 4.2%.

Write to Brian Swint at [email protected]

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