The price of Bitcoin has gone under the price range of $25,000 for the first time since the 17th of March, which followed a pretty hawkish announcement by the Feds amid yet another turbulent week for the crypto industry. Within the span of just 30 minutes on the 15th of June, the price of the cryptocurrency went down by 4% from a sum of $25,867 to a sum of $24,819, as mentioned by data from TradingView.
During publication, the crypto had managed to secure some ground and was holding on to a sum just above $25,000. Over the last week, the cryptocurrency had been constantly holding on to the region around $26,000 with the market coming to grips with the Securities and Exchange Commission’s legal action that was taken against Coinbase and Binance, the crypto exchange heavyweights. This also led to increasing macroeconomic uncertainty regarding the interest rate signals from the United States Federal Reserve.
Bitcoin Price Has Dipped Due To Investor Sentiment
The major drop in the price of Bitcoin came just three hours after the federal reserve announced a half in the interest rate hikes, which soon followed a 15-month-long campaign of rate increases that were supposed to deal with the surging inflation.
Although the market had been expecting a pause in the rate unanimously, the Federal Open Markets Committee’s statement did hint at further hikes in the rate in the future, which definitely blunted the excitement of the investor toward risk assets like cryptocurrencies. According to Josh Gilbert, a market analyst for eToro, Jerome Powell, the Federal Reserve Chair, has made it pretty clear that this would only be a temporary pause, something that could potentially spell trouble for the cryptocurrency in the longer term.
Along with Bitcoin, Ether, the second largest cryptocurrency by market cap, also took a major hit, as it fell by around 5% from a sum of $1727 to a sum of $1631 in the same time frame. The altcoins were also not spared from this bearish sentiment either.