Cryptocurrencies, like Bitcoin, saw their values drop on Thursday due to the recent announcement by the Federal Reserve regarding its monetary policy. This decision had a ripple effect on assets that are sensitive to risks. As a result, the crypto markets have returned to their usual pattern of trading within a specific price range, which is something we’ve seen in recent months.
In the past day, the price of Bitcoin decreased by about 1%, settling at around $26,850. This decline came after it reached a high point of nearly $27,300 on Wednesday. The Federal Reserve’s choice to keep interest rates unchanged while hinting at possible increases in the future played a role in this shift. Consequently, Bitcoin’s value has gone back to the $26,000 range, where it has been mostly steady for more than a month. During this time, the cryptocurrency market has been unusually stable, with very low levels of price fluctuations and trading activity.
Related: Bitcoin’s Price Dips Below $26,000 Amidst Market Uncertainty
Similar to traditional financial markets like the Dow Jones Industrial Average and S&P 500, the cryptocurrency market responded to the Federal Reserve’s actions. However, the reaction in the crypto market was relatively mild, as many had expected the Fed to hold off on raising rates. While Bitcoin’s performance continues to be affected by expectations about interest rates, the Federal Reserve isn’t anticipated to make another monetary policy decision until November.
Beyond Bitcoin, Ether, the second-largest cryptocurrency, also saw a decrease of 1.5%. Smaller cryptocurrencies, often called altcoins, experienced similar declines, with Cardano dropping by 2% and Polygon slipping by 2%. Memecoins, known for their playful nature, followed a similar trend, with Dogecoin losing 1% of its value and Shiba Inu declining by 1% as well.
