Bitcoin Bounces Back After Fed Announcement
Bitcoin experienced a downward trend in its price for several consecutive days, with fears surrounding the US central bankโs monetary policy causing a price dump below $61,000. However, the asset rebounded after the Federal Reserve revealed that there would be no significant changes to its policies. This positive news had a ripple effect on the rest of the market, leading to a recovery in prices.
Price Declines and Profit-Taking
Yesterday morning, BTC reached its lowest price in over two weeks, dropping below $61,000. Several factors contributed to this decline:
- Profit-taking by investors, including miners
- Significant outflows from Bitcoin ETFs
- Fears surrounding the outcome of the FOMC meeting
Federal Reserve Announcement Sparks Recovery
In the next 12 hours, Bitcoin showed some signs of improvement and recovered around $1,000. However, the real turnaround happened after the US Federal Reserveโs second FOMC meeting of the year. During the meeting, Chairman Jerome Powell stated that there would be no further interest rate hikes for now.
This announcement had an immediate impact on BTCโs price, leading to a 4% spike. The increase continued gradually until Bitcoin surpassed $68,000, resulting in a gain of over $7,000 in less than a day.
Bitcoin and Altcoin Performance
Although Bitcoin has lost some ground since then, it still trades above $67,000 and has recorded a 9% gain for the day. Other altcoins have also experienced positive movements:
- Ethereum (ETH) surged by 13% and reached over $3,500
- Solana (SOL) added 15% and touched $190
- Dogecoin (DOGE) shot up by 20% and is now above $0.15
Over-Leveraged Traders Face Losses
The volatile price movements in the market have had a negative impact on over-leveraged traders. In the past day alone, nearly 100,000 traders have suffered losses, resulting in liquidated positions worth over $320 million. The largest liquidation occurred on Binance and amounted to $7 million.
Hot Take: Bitcoin Rebounds After Fed Announcement
After experiencing a downward trend, Bitcoin has bounced back following the Federal Reserveโs announcement of no further interest rate hikes. This news has not only boosted Bitcoinโs price but also had a positive effect on other altcoins in the market. However, over-leveraged traders have faced significant losses due to the volatility. It remains to be seen how the market will continue to react in the coming days.
Sources: CryptoPotato, CryptoPotato, CryptoPotato, CryptoPotato, CoinGlass
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.