Bitcoin’s Price Drops Below $64k as Entire Market Turns Red, XRP Loses Gains
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Bitcoin’s price dropped 1.4% to $63,721 on Thursday after the US Federal Reserve decided to keep interest rates unchanged and amid concerns about rising tensions in the Middle East.
The crypto asset dropped below $65,000 for the first time in a week. This occurred after Fed officials, as economists expected, decided to keep interest rates unchanged at their July meeting on Wednesday. They also suggested that recent progress in lowering inflation might soon permit rate cuts.
The Fed decided to keep interest rates steady at around 5.3%, a two-decade high where they’ve been for a year. At a news conference, Fed Chair Jerome Powell mentioned that a rate cut “could be on the table” at the next meeting on Sept. 18.
FOMC update:
– Rates unchanged
– FED says no rate cuts until it is more confident that inflation is moving to 2%You don't need a career in economy to know that the FED was not going to let the market get hyped up.
It would be an unnecessary risk. pic.twitter.com/pdyV75gKr5
— CrypNuevo 🔨 (@CrypNuevo) July 31, 2024
Bitcoin’s Price Swings as Fed Signals Potential Rate Cuts
The central bank’s statement on Wednesday is expected to strengthen expectations for a future rate cut. Officials highlighted that inflation is cooling and emphasized their growing focus on the labor market’s health.
“The economic outlook is uncertain, and the committee is attentive to the risks to both sides of its dual mandate,” the statement read. This replaced previous wording, which stated that the Fed was “highly attentive to inflation risks.”
Anticipation of Fed decisions often impacts Bitcoin markets. Traders position themselves ahead of expected rate changes, leading to price fluctuations in Bitcoin and other cryptocurrencies.
Whale Accumulation Spurs XRP Price Increase Before 5% Drop
XRP dropped nearly 5.4% to $0.606, erasing gains made on July 31.
On Wednesday, XRP’s price increase coincided with a growing accumulation sentiment among its wealthiest holders, known as “whales.” The rebound resembled pre-2017 rally patterns, indicating that the cryptocurrency could have further growth potential in the coming months.
On-chain data analytics platform Santiment previously observed a spike in XRP holdings among addresses with at least 10,000 XRP tokens.
Meanwhile, Ether dropped 3.3% to $3,160, and Solana’s SOL fell by 2.27%.
