HomeNewsFederal Reserve Holds Steady as Bitcoin Takes a Plunge - Will BTC...

Federal Reserve Holds Steady as Bitcoin Takes a Plunge – Will BTC Price Crash to $20,000 or Soar to $30,000?

- Advertisement -
  • Despite the current regulatory upheaval, prominent Bitcoin investors maintain their holdings.
  • Bitcoin manages to recover and stabilize at $25,000 after a recent downturn.

As the crypto markets weather the storm of increased regulatory scrutiny, especially in the US, Bitcoin’s largest stakeholders remain firm in their long-term positions, exhibiting remarkable resilience. Following a turbulent Wednesday, Bitcoin has managed to stabilize, reattaining a valuation of $25,000.

A late plunge on Wednesday saw Bitcoin temporarily dip below this threshold, induced by growing apprehensions of heightened central bank rigidity in the latter part of this year. Bitcoin, however, fought back, trading at approximately $25,171, reflecting a minor decline of 3.1% within the last four hours. This incident was part of a broader cryptocurrency sell-off.

- Advertisement -

During this period, Bitcoin had largely remained just under $26,000 for the most part of the preceding five days. The markets were eagerly awaiting the US central bank’s latest interest rate verdict while simultaneously digesting the implications of the recent lawsuits by the U.S. Securities and Exchange Commission against major crypto exchanges, Binance and Coinbase.

In a surprising move, the Federal Reserve chose to halt rate hikes. However, subsequent comments from Jerome Powell, the bank Chair, hinting at the bank’s intent to reduce annual inflation to a targeted 2.5% from the existing 4%, unsettled the markets. Critics argue that this excessive focus on inflation could potentially trigger a recession.

>> Buy Bitcoin quickly and securely with PayPal, credit card or bank transfer at eToro with low fees and deposit protection. Get started with BTC now. Visit Website <<

- Advertisement -

The crypto market’s reaction was swift and severe. Ether, the second-largest cryptocurrency by market cap, saw a drop to $1,600 before clawing back to around $1,654, marking a 5.1% decrease from Tuesday. XRP also felt the pressure, recording a 6.4% drop within the last 24 hours to trade at just above 48 cents. The CoinDesk Market Index, a measure of crypto market performance, was down by 3.8%.

Despite these troubling signals, the crypto market seems far from capitulation. Large Bitcoin investors, often referred to as ‘whales,’ have shown no indication of downsizing their Bitcoin portfolios amidst the regulatory uncertainty. On-chain analytics data from Glassnode supports this observation, highlighting an increase in Bitcoin holdings across addresses holding between 100-1,000 BTC following the SEC’s lawsuits against Binance and Coinbase.

While this data does not necessarily signal a bullish outlook, it suggests that the major Bitcoin investors remain steadfast, opting to maintain their positions for the time being, unfazed by the current regulatory tempest. These signs of resilience within the crypto markets suggest a fascinating narrative, embodying the tenacious spirit that has long defined the world of blockchain and digital currencies.


Best Crypto Exchange for Everyone:

  • Invest in Bitcoin (BTC) and 70+ cryptocurrencies and 3,000+ other assets.
  • 0% commission on stocks – buy in bulk or just a fraction from as little as $10.
  • Copy top-performing traders in real time, automatically.
  • Regulated by financial authorities including FAC and FINRA.

2.8 Million Users

Get Started


- Advertisement -
ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Jane Smith
Jane Smith
As a Bitcoin Journalist, I am dedicated to reporting the latest developments in cryptocurrency, with a particular focus on Bitcoin. Through extensive research and interviews with industry experts, I provide accurate and up-to-date information on the ever-evolving world of cryptocurrencies. My goal is to help readers stay informed and make informed decisions regarding their investments in this rapidly changing field.
- Advertisment -spot_img