Bitcoin is down about 1.8% today due to concerns about risky investments following the Federal Reserve's statement and press conference. In the last 24 hours, the price of Bitcoin has dropped to trade at $26,660. This decline was driven by the Fed's decision to keep interest rates the same but hinted at possible rate increases. As a result, Bitcoin has returned to the familiar range around $26,000, which has been relatively stable for over a month. During this time, the crypto market has experienced less price fluctuation and lower trading activity.
Cryptocurrencies, much like traditional stock market indices such as the US30 and SPX500, reacted to the Federal Reserve's decision. However, the market response was relatively muted because most people expected the Fed to hold off on raising interest rates.
Bitcoin's future performance will still be influenced by interest rate expectations. If yields continue to increase, it could reduce the appeal of riskier investments like cryptocurrencies. The next Federal Reserve monetary policy decision will not happen until November, so we might see Bitcoin consolidate in trading until then.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.