Bitcoin’s price dipped beneath the $25,000 mark for the first time since March, following the Federal Reserve’s decision to keep interest rates steady. Unexpectedly, the Fed also projected two additional rate hikes within the current cycle. This announcement was not well received by Ethereum, causing its value to plummet under $1,700.
Bitcoin witnessed a drastic dip, reaching a multi-month low on Thursday as market reactions to the Federal Reserve’s unchanged interest rates continued to unfold.
Despite holding rates steady, Chair Powell did anticipate two more hikes, citing persistently high core inflation.
His remark was, “I believe that if you examine the overall core PCE inflation for the past six months, we’re not observing much improvement.”
BTC/USD – Daily Chart
On this news, BTC/USD fell to a day’s low of $24,820.20, coming down from Wednesday’s peak of $26,040.66.
This tumble brought bitcoin to its most vulnerable position since March 16 when it had dipped to a low of $24,200.
The current downturn coincides with the 14-day relative strength index (RSI) slipping below a support level of 36.00, presently marking at 34.55.
Similarly, ethereum (ETH) took a substantial hit as its price dropped below $1,700, a level not seen in the past three months.
Following Wednesday’s high of $1,749.16, ETH/USD plummeted to a low of $1,624.14 earlier in the day.
This represents the lowest Ethereum has fallen since March 15, when it was trading at a minimum of $1,620.
ETH/USD – Daily Chart
The price drop on Thursday indicates that the price strength has entered an oversold phase, with the RSI now sitting below 30.00.
The index is currently at 29.17, marking its weakest point since November of the previous year when ETH was approximately trading at $1,000.
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Do you think Ethereum could plunge further in the upcoming days? Share your views in the comments section below.
Frequently Asked Questions (FAQs) about Federal Reserve Interest Rate Decision
What caused Bitcoin to fall below the $25,000 level?
Bitcoin’s price fell below $25,000 due to the Federal Reserve’s decision to keep interest rates unchanged, and the unexpected forecast of two additional rate hikes within the current cycle.
How did Ethereum react to the Federal Reserve’s decision?
Ethereum’s price reacted negatively to the Federal Reserve’s decision and the forecast of further rate hikes, causing its value to drop below $1,700 for the first time in three months.
When was the last time Bitcoin and Ethereum hit such low prices?
Bitcoin hadn’t seen a price below $25,000 since March 16, while Ethereum hadn’t fallen below $1,700 since March 15.
How does the Relative Strength Index (RSI) relate to the current Bitcoin and Ethereum price decline?
The 14-day RSI for Bitcoin fell below a support level at 36.00, indicating an overall bearish market sentiment. Similarly, Ethereum’s RSI also dipped below 30.00, suggesting the asset is currently oversold.
What is the forecast for Bitcoin and Ethereum’s prices?
The text does not provide a specific forecast for the future prices of Bitcoin and Ethereum. However, based on current market trends and the Federal Reserve’s decision, both cryptocurrencies are currently experiencing a bearish market.
More about Federal Reserve Interest Rate Decision
- Federal Reserve’s Latest Decision
- Bitcoin Price History
- Ethereum Price History
- Understanding the Relative Strength Index (RSI)