Bitcoin falls to $114K due to lower US Fed rate expectations
On 25 July, Bitcoin proved again that the crypto market is still sensitive to the traditional economy. The world's main cryptocurrency fell to $114,762, its lowest level since 11 July, after markets began to fade hopes of a key rate cut by the US Federal Reserve (Fed). The rate later pulled back up slightly, but the alarm bell had already sounded.
How it affected the rest of crypto
- Ether (ETH) - behaved neutrally, did not show any serious movements
- XRP - lost about 3% amid a general cooling of investor sentiment
Bitcoin fell to $114K amid the Fed's tough stance. Illustration: Bloomberg
What happened before
Bitcoin hit a new all-time high of $123,205 in early July amid optimism about a more loyal US policy towards cryptocurrencies and an influx of funds into crypto-investment products. This fuelled the growing interest in digital assets and fuelled bullish sentiment in the market.
Details
The market's abandonment of hopes for a rate cut in the near future has cooled the fervour of crypto investors. A return to "tight" monetary policy rhetoric could mean that interest in Bitcoin and other digital assets will cool off - at least temporarily. Investors are increasingly looking towards less volatile assets when "cheap money" is no longer available.
Source: Bloomberg
