Bitcoin Drops Below $25k As Fed Pauses Rate Hikes

TL;DR

• Bitcoin dropped below the $25k level for the first time in months after the Federal Reserve paused interest rate hikes.

• The total crypto market cap also risks dropping below the $1 trillion mark soon. 

Bitcoin Dips Below $25k

Bitcoin, the world’s largest cryptocurrency by market cap, has lost its support at the $25k level. The leading cryptocurrency has maintained its price above $25k in recent weeks but was unable to do so a few hours ago.

Bitcoin fell to about $24,990 on Wednesday, losing more than 3% of its value in the process. The bearish performance came after the United States Federal Reserve left interest rates unchanged. This is the first time the Federal Reserve didn’t hike interest rates in more than a year.

The pause in interest rates hike comes as inflation figures in the United States improved in recent weeks. However, the Fed has indicated that this pause might not last, resulting in Bitcoin and the broader crypto market recording losses.

Ether, the second-largest cryptocurrency by market cap, lost more than 5% of its value in the last 24 hours and is now trading below the $1,700 level once again. 

XRP is the worst performer amongst the top 10 cryptocurrencies by market cap, down by more than 7% in the last 24 hours.

The total cryptocurrency market cap currently stands at $1.02 trillion, down by 3% in the last couple of hours.