CryptoBitcoinBitcoin, other cryptocurrencies fall slightly after Fed decision

Bitcoin, other cryptocurrencies fall slightly after Fed decision

Cryptocurrencies, including Bitcoin, experienced a marginal drop on Thursday, following the Federal Reserve’s recent decision to keep interest rates unchanged while hinting at potential future increases.

Bitcoin, the leading digital currency, saw a 1% decrease in price in the last 24 hours, settling around $26,850, after peaking at nearly $27,300 on Wednesday.

The return of Bitcoin to roughly $26,000 continues the trend of stagnant activity seen over the past month. This period of low volatility and reduced trading volumes has led to a lull in cryptocurrency markets. The market is expected to continue this trend of gradual accumulation, with quick buy-ups following price dips and short-lived rallies.

This response in crypto markets mirrors that of traditional stock markets such as the Dow Jones Industrial Average and S&P 500 following the Federal Reserve’s decision. Despite the largely anticipated decision to hold off on rate hikes leading to a subdued response, future rate prospects will continue to influence Bitcoin.

Higher returns on risk-free cash or Treasuries may reduce investor incentive to opt for riskier options such as cryptocurrencies.

Analysts suggest that investors should prepare for more of the same subdued activity from Bitcoin that has characterized the crypto market since early summer. The next monetary policy decision from the Federal Reserve is not expected until November.

Potential catalysts for major market upswings could include approval of proposed spot Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission or changes in Bitcoin issuance due to next year’s halving event, which could impact supply and demand dynamics.

Alongside Bitcoin, other cryptocurrencies also saw declines. Ether, the second-largest cryptocurrency, fell by 1.5% to $1,610. Smaller tokens known as altcoins weakened too, with Cardano and Polygon both experiencing a 2% drop. Memecoins followed suit, with Dogecoin and Shiba Inu each losing 1% of their value.

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Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

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