The cryptocurrency market faced a sharp downturn today as Bitcoin (BTC) dropped 1% below $118.5K following the Federal Reserve’s decision to hold interest rates steady. Traders were caught off guard as Ethereum (ETH), XRP, and Dogecoin (DOGE) also saw significant declines. Is this a temporary setback or the start of a deeper correction? Let’s dive into the latest Bitcoin news today.
Why Did Bitcoin Drop After the Fed’s Decision?
The Federal Reserve kept its benchmark interest rate unchanged between 4.25% and 4.50%, surprising many traders who expected a hike. This led to a sell-off across major cryptocurrencies:
- Bitcoin (BTC): Fell below $118,500 after hovering near $120K.
- Ethereum (ETH): Dropped over 2% to $3,725.
- Altcoins: XRP and Solana (SOL) plunged 13% in a week, while Dogecoin (DOGE) fell nearly 18%.
Crypto Market Liquidation and Large Transactions Decline
Data from IntoTheBlock and Coinglass reveals the extent of the damage:
| Metric | Bitcoin (BTC) | Ethereum (ETH) |
|---|---|---|
| Large Transactions Drop | 9.6% | 20.8% |
| Daily Active Addresses Increase | 2.5% | 12.7% |
Over 108,863 traders were liquidated in 24 hours, totaling $216.32 million in losses.
What’s Next for Bitcoin and Altcoins?
Analysts suggest Bitcoin is consolidating between $115K and $120K, with a potential breakout looming. Key factors to watch:
- FOMC Minutes: Traders await further policy clarity.
- Macroeconomic Data: Upcoming reports could sway market sentiment.
- Altcoin Rotation: Ethereum’s perpetual futures volume surpassed Bitcoin’s for the first time.
Conclusion: Will Crypto Recover or Face Further Decline?
The crypto market’s reaction to the Fed’s decision highlights its sensitivity to macroeconomic shifts. While Bitcoin’s long-term outlook remains strong, short-term volatility is expected. Traders should stay vigilant and monitor key support levels.
Frequently Asked Questions (FAQs)
1. Why did Bitcoin drop after the Fed held rates?
The lack of a rate hike led traders to reassess expectations, triggering a sell-off.
2. How much did the crypto market cap fall?
Total market cap dropped over 5% to $3.92 trillion.
3. Is Dogecoin in a bearish trend?
DOGE broke below its 20-day moving average, signaling potential further declines.
4. What’s the key level for Bitcoin’s next move?
A break above $120K could signal a rally, while a drop below $115K may deepen corrections.
