- Bitcoin (BTC) and Ethereum (ETH), two leading cryptocurrencies, reported significant decreases of 3.8% and 6.1%, respectively, over the past 24 hours.
- The recent dip in crypto values follows the Federal Reserve’s latest decision on rate hikes, causing market uncertainty.
Over the past day, the cryptocurrency market has witnessed a noticeable decline. Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, took a 3.8% hit. Ethereum (ETH), holding the second place in the market, saw an even more substantial decline of 6.1%.
Additionally, other significant players in the crypto arena faced similar downturns. Ripple-associated XRP, despite the buzz around the Hinman Documents, decreased by 6.4%. Cardano (ADA), another leading cryptocurrency, fell by 5.8%, and popular meme token Dogecoin (DOGE) suffered a 2.7% drop.
As reported by U.Today, these market fluctuations follow the Federal Reserve’s recent decision regarding rate hikes. While the Fed maintained its steady rates for the first time in over a year, inflation continues to exceed the central bank’s 2% target, causing ripples across financial markets, including crypto.
Federal Reserve officials are anticipating additional rate hikes throughout the year, casting a veil of uncertainty over the crypto market. This forecast, although supported by the majority, still finds the path to be somewhat uncertain, as observed by Jeffrey Gundlach of DoubleLine Capital.
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Ryan Detrick, a market technician, highlighted in a recent tweet that out of 18 Federal Reserve members, 12 anticipate at least two more rate hikes this year. Furthermore, he noted that the median terminal rate has been elevated to 5.6%, a move that is considered more “hawkish” than expected.
This position taken by the Federal Reserve is having a cascading effect on the cryptocurrency market, as investors adapt to the prospect of increased interest rates. It is crucial to keep in mind that monetary policy decisions, such as those regarding interest rates, have a substantial impact on the perceived value of both traditional and digital assets. The current market downturn is a clear testament to this interconnectedness.
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