Bitcoin and other cryptocurrencies were lower on Thursday after a sell-off on Wednesday following the latest rate hike by the Federal Reserve. Crypto traders still see momentum in the digital asset rally – but a pause for now.
The price of Bitcoin has fallen 1.5% in the past 24 hours to $27,700, falling from Wednesday’s highs above $28,500, but falling back from the bottom below $27,000 immediately after the Fed raised interest rates by a quarter of a percentage point. Wednesday’s peak marked the highest level for Bitcoin…
Bitcoin
and other cryptocurrencies were lower on Thursday after a sell-off on Wednesday following the latest rate hike by the Federal Reserve. Crypto traders still see momentum in the digital asset rally – but a pause for now.
The price of Bitcoin has fallen 1.5% in the past 24 hours to $27,700, falling from Wednesday’s highs above $28,500, but falling back from the bottom below $27,000 immediately after the Fed raised interest rates by a quarter of a percentage point. Wednesday’s peak marked the highest level for Bitcoin since the crypto bear market accelerated last June, with prices of the biggest digital asset still up by more than two-thirds in 2023 in a rally that has spurred calls for a new bull market.
“Bitcoin’s rally ahead of the Fed set us up for disappointment, and sure enough we saw Bitcoin pull back from just $29,000 after Powell’s press conference,” said Sam Yilmaz, co-founder of venture fund Bloccelerate. “A cooling off period is overdue and allows Bitcoin and crypto to settle … I still think Bitcoin can go to $35,000 in a few weeks because, simply put, price action begets price action in crypto.”
Cryptos fell in line with the stock market after the Fed raised interest rates, a return to Bitcoin’s correlation with stocks after weeks of outperformance. While the 25 basis point interest rate hike was priced in, digital assets fell in tandem
Dow Jones Industrial Average
and
S&P 500
as investors worried about how tightening financial conditions will continue to pressure the banking system.
Beyond Bitcoin,
Ether
— the second-largest crypto — fell 2% to $1,750 but was above lows late Wednesday. Smaller cryptos or altcoins were more mixed, too
Cardano
up 1% and
Polygon
1% lower. Memecoins were slightly weaker, med
Dogecoin
and
Shiba Inu
both down less than 1%.
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Write to Jack Denton at [email protected]
