BTC, Ether, XRP Recover Losses As Fed Keeps Rate Unchanged

TL;DR

• The cryptocurrency market dumped on Wednesday evening after the Federal Reserve kept interest rates unchanged.

• However, BTC, ETH, and XRP have recovered and are currently trading in the green.

BTC Recovers Above $118k as Traders Lose $200m Overnight

 The cryptocurrency market recorded losses late on Wednesday after the FOMC meeting. However, Bitcoin and other leading cryptocurrencies recovered the losses overnight, as most of them were in the green.

The market underperformed as the Fed kept the benchmark interest rate steady at 4.25% as expected. Furthermore, Chairman Jerome Powell dampened prospects of renewed rate cuts from September, stressing that the central bank is focused on controlling inflation, not on government borrowing or home mortgage costs that Trump wants lowered.

The comment saw BTC drop from $118k to below $116k as altcoins also took a hit. The losses resulted in traders losing over $200 million within a few hours. 

However, the losses didn’t last as BTC, ETH, and XRP are all trading in the green. Bitcoin is up less than 1% in the last 24 hours and now trades above $118,600 per coin. Ether has also recovered above $3,800 and is now targeting the $4k psychological level.

The market conditions remain volatile as traders now focus attention to Friday’s Nonfarm Payroll data.