After a long period of strength experience Bitcoin (BTC) and the entire crypto world takes a reset. Although Bitcoin continues to trade above the $100,000 threshold, there was a significant correction yesterday. Altcoins such as Ethereum (ETH), Ripple (XRP) and Dogecoin (DOGE) are under even greater pressure.
Financial markets react negatively to concerns about inflation
The price slide began last night at 8:00 p.m. when the US Federal Reserve Federal Reserve announced a third rate cut this year – by 0.25%, as expected.
Interest rate cuts are considered positive for… Cryptoas they make loans cheaper and drive investors towards riskier investments like Bitcoin. But the market was disappointed by the central bank’s pessimistic forecasts:
- Four further interest rate cuts were expected in the coming year.
- The Federal Reserve now only expects two interest rate cuts.
In addition, Fed Chairman Jerome Powell stated that the goal of 2% inflation may not be achieved for another two years. This surprised the markets negatively and led to a sell-off across the board.
Bitcoin briefly falls below $99,000, quickly stabilizes
Like you did this morning Bitcoin News As you could read, the Bitcoin price was in free fall last night. When the interest rate decision was announced, the price was still at $104,600 per Bitcoin. Less than two hours later, the price fell just above $100,000, and another blow came that night when Bitcoin plummeted to a low of just under $99,000.
Overall, Bitcoin is down more than 5%. However, the price has now recovered and is back at almost $102,000.
So Bitcoin has recovered strongly and is now only about 2% lower than it was 24 hours ago. Altcoins, on the other hand, are doing much worse:
- Ethereum records a loss of 5%,
- XRP and Cardano (ADA) are at 6%,
- and Dogecoin even lost 7%.
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