Bitcoin (BTC) and Ethereum (ETH) Dip After Federal Reserve Keeps Rates Unchanged

After Federal Reserve Chair Jerome Powell said a September rate cut “could be on the table,” stocks soared to session highs.

After Federal Reserve Chair Jerome Powell stated that a September rate cut “could be on the table,” stocks rallied to session highs on Tuesday, August 1. The tech-heavy Nasdaq 100 soared by 3.3%, while the S&P 500 gained 2%. However, the world’s largest cryptocurrency by market capitalization, Bitcoin (BTC), saw a 1.3% decrease, trading at $66,088. At the same time, Ethereum (ETH) also faced a slight loss, dropping by 1.11% to reach $3,313. Furthermore, the global cryptocurrency market cap also saw a 0.71% decrease over the past 24 hours, bringing the total market cap to $2.39 trillion.

Despite the minor setback, market analysts believe that this is a short-term dip. They add that Bitcoin and other cryptocurrencies are still showing bullish signals, despite being in the bear grip. While BTC is still struggling to cross the $70K mark, it will be interesting to see how BTC reacts in August before the rate cuts.

On July 31, the US Federal Reserve concluded a two-day Federal Open Market Committee (FOMC) meeting. During the meeting, the members decided to keep the benchmark interest rates unchanged, aligning with Wall Street expectations. The rates remained at 5.25% – 5.50%. This decision marked the eighth consecutive meeting without a rate change.

During the FOMC meeting, members of the Federal Reserve also discussed the possibility of cutting interest rates in the future. Several traders are hoping for a rate cut, which has not occurred since March 2020. A future rate cut could signal bullish trends for both stocks and cryptocurrencies, potentially uplifting markets for the remainder of 2024. Unless another significant event impacts the crypto sector, markets are expected to stabilize in the absence of any further news.

In the meantime, aggressive bull accumulation and increased negative sentiment among the crowd may set the stage for a substantial market rebound.

Bitcoin Price Analysis (BTC/USD 1 Hour Chart) – BTC Loses $70K, Impact on Crypto Prices

As FOMC maintains current interest rates, crypto prices initially dipped. traders had hoped for a rate cut.

After the FOMC meeting, cryptocurrency prices experienced an initial sell-off. Many traders had anticipated an interest rate cut, which would have signaled bullish trends for both stocks and cryptocurrencies. However, the Federal Reserve opted to pause on any further rate changes, leading to the sell-off in the crypto market.Bitcoin fell below the $66,600 level, losing the majority of its gains from Monday. The tech-heavy Nasdaq 100 also saw a 1.3% gain on Monday, which was wiped out by the sell-off. At the same time, the S&P 500 also lost half of its gains from the previous session.

On the other hand, the global cryptocurrency market cap also saw a 0.7% decrease, bringing the total market cap to $2.39 trillion. This sell-off comes as traders hoped for a rate cut, which would have signaled bullish trends for both stocks and cryptocurrencies. However, the Federal Reserve opted to pause on any further rate changes.

Bitcoin’s immediate resistance is noted at $66,852, with support at $65,000. BTC is trading within a narrow range, and the RSI signals oversold conditions, suggesting possible further declines if the price falls below $65,900.

Investors are now closely watching the FOMC meeting for clues about inflation and economic growth, which could influence Bitcoin’s next move.

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