Bitcoin experienced a sudden drop of around 3% following the FED’s decision to maintain interest rates today. While it was widely expected that the FED would keep rates unchanged, the release of the dot plot and the hawkish comments from FED President Jerome Powell were the main drivers behind the decline. The dot plot, which previously suggested three interest rate cuts in 2024, only predicted one 25 basis point cut in the updated version released today. Powell’s emphasis on high inflation rates and lack of dovish comments on interest rate cuts contributed to the Bitcoin price decline. In the 12 hours following the interest rate decision, a total of $147 million was liquidated from the cryptocurrency market, with the majority coming from long positions totaling $83 million. Bitcoin led the way as the most liquidated cryptocurrency, followed by Ethereum. This is not financial advice. For trading in over 300 cryptocurrencies, you can sign up with Binance exchange with a 20% commission discount. Stay updated with exclusive news, analysis, and on-chain data by following our Telegram and Twitter accounts.
