Bitcoin dropped to $63K after the Federal Open Market Committee (FOMC) meeting. The broader cryptocurrency market followed this trend, with altcoins also declining.
Fed Chair's Remarks
Fed Chair Jerome Powell noted solid economic growth, improvements in GDP, and Private Domestic Final Purchases (PDFP). However, he mentioned slowed consumer spending growth, aligning with the Fed’s inflation reduction plans. Powell emphasized the Fed’s commitment to returning inflation to the 2% target.
Possible September Rate Cut
Despite no confirmation of a September rate cut, Powell’s optimistic tone suggests it is possible. The next two months of inflation data will be crucial.
Market Reaction
After the FOMC meeting, the global crypto market cap dropped by 3.42% to $2.3 trillion, while total market volume increased by 18.85% to $74.68 billion.
Bitcoin fell 3.20% to $63,977.60. Its 24-hour range was between $63,746.01 and $66,810.21. Despite recent accumulations, the bearish trend post-FOMC has raised investor concerns. However, expectations of a September rate cut offer some optimism. Bitcoin's dominance fell to 54.79%, with $56 million in liquidations.
Ethereum and Altcoins Decline
Ethereum (ETH) fell 3.47% to $3,180.86. Its 24-hour low and high were $3,173.48 and $3,347.64. This decline reflects the overall market sentiment and the Fed's stance. Despite inflows into ETH ETFs, significant price movement remains absent.
XRP and Solana Prices
XRP slipped to $0.61, down 6.40% in the past 24 hours. Its 24-hour low and high were $0.6096 and $0.6556.
Solana (SOL) dipped 6.99% to $167.45. Its 24-hour low and high were $168.75 and $184.18. The potential for a Solana ETF has created buzz in the crypto community.
Looking Ahead
The cryptocurrency market experienced notable declines following the FOMC meeting, with Bitcoin and major altcoins reflecting this trend. Investors are now awaiting upcoming inflation data, hoping for signs that might prompt a September rate cut by the Federal Reserve.