Bitcoin Drops Below $28k Ahead Of The Fed’s Interest Rate Decision

Twitter icon  •  Published il y a 1 an  •  Hassan Maishera

Bitcoin is trading below $28k as investors prepare for the latest interest rate decision by the United States Federal Reserve.

TLDR;

  • Bitcoin has dropped below $28k as investors prepare for the Fed’s interest rate decision tomorrow.
  • The Federal Reserve is expected to raise interest rates by 25 basis points.

Bitcoin Dips Below $28k

Bitcoin performed excellently over the past week, soaring past the $28k level for the first time since June 2022 despite the recent banking crisis in the United States and Europe.

The world’s leading cryptocurrency also rallied after reports emerged that the US Federal Reserve would slow down or pause its interest rate hikes this month. 

However, heading into the Fed’s interest rate decision on Wednesday, Bitcoin’s rally has slowed down. Bitcoin is up by roughly 1% in the last 24 hours and is now trading below $28k per coin. 

The largest cryptocurrency by market cap reached a 2023 high of $28,400 on Monday, just hours after the Fed announced it had teamed up with five other major central banks to ensure a steady flow of the U.S. dollar.

The recent banking crisis has seen faith in the traditional financial system take a hit, allowing cryptocurrencies to grow as alternatives. 

The Fed is expected to increase its interest rate by 25 basis points following last week’s improved inflation report. Investors are hoping for a more dovish Fed policy as that would allow Bitcoin and other assets to excellently in the near term.

Altcoins Are In The Red

While Bitcoin is trading sideways, altcoins have been underperforming. Ether and the other leading altcoins are down by 1% or more over the last 24 hours, with the broader market losing less than 1% of its value during that period.

Ether has dropped below $1,800 and is down by 1% so far today. Dogecoin is the worst performer amongst the top 10 cryptocurrencies by market cap, losing more than 4% of its value in the last 24 hours.

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.