Most experts agreed that the U.S. Federal Reserve was going to once again leave interest rates untouched, but bitcoin still tumbled when the central bank published its official decision.
Bitcoin Shrugs Off Brief Fed Panic
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BTC Brushes Off Fed Shock, Bounces Back
There were few, if any, surprises at Fed Chair Jerome Powell’s press conference on Wednesday, but bitcoin still plummeted roughly 1.7% to just under $116K soon after Powell confirmed that the central bank would hold rates steady. Nearly 24 hours later, the cryptocurrency has reclaimed $118K.
Powell has been facing increasing pressure from U.S. President Donald Trump to cut rates. Even two members of his inner circle are beginning to voice dissent over his insistence on maintaining the federal funds rate in the 4.25-4.50% range. Fellow Federal Reserve Board members Michelle Bowman and Christopher Waller, both disagreed with Powell’s decision and recommended a quarter-point cut. It was the first time in 32 years that two or more board members diverged from the prevailing consensus.
Powell’s announcement caused a brief but precipitous plunge in bitcoin’s price, and now, the digital asset has gradually returned to $118K, a level it had previously settled in on earlier in the week.
Overview of Market Metrics
Bitcoin was priced at $118,404.41 at the time of writing, according to Coinmarketcap. The price reflects a 0.53% increase over 24 hours, but the cryptocurrency is down 0.43% since last week. BTC has traded between $115,800.83 and $118,919.98 since yesterday, with the lower limit mostly attributable to Wednesday’s Fed announcement.
Trading volume over 24 hours climbed 9.64% to $68.96 billion, and market capitalization ticked upward by 0.44% to $2.35 trillion. Bitcoin dominance was also up, rising 0.15% since yesterday to reach 61.70%.
The value of open BTC futures contracts climbed 1.16% over 24 hours and stood at $83.94 billion at the time of writing. Bitcoin liquidations since Wednesday totaled $62.60 million. Long positions were responsible for most of that total and saw $54.21 million in liquidations. Shorts had a smaller $11.39 million wiped out.
