đšFedâs Rate Cut Sends Shockwaves Through Crypto Markets: Analyzing Bitcoinâs Decline
The Federal Reserveâs unexpected 25-basis-point rate cut created turmoil in the cryptocurrency market, contrary to the anticipated positive impact. Bitcoin ($BTC ), which had sustained its $100,000 level for months, plummeted below this psychological threshold, triggering a wave of sell-offs.
Bitcoin Technical Analysis:
Bitcoin opened at $100,880, briefly dipping to $98,874 during the trading sessionâa critical breach of its 100-day moving average. Indicators like RSI fell to 42, suggesting a shift into bearish territory. Volume spikes highlighted panic-driven exits, with the market capitalization dropping to $2 trillion.
Altcoin Performance:
Ethereum ($ETH ) mirrored Bitcoinâs downturn, losing 6% to reach $3,652. XRP experienced a sharper decline of 10%, breaking below its key support at $0.50. Meme coins, including $DOGE and SHIB, also followed the bearish trend with losses of 7% and 6%, respectively.
Despite a 5% decrease in the overall market cap, the 40% rise in trading volume to $251 billion indicates ongoing investor activity. Analysts believe these moves reflect not just monetary policy impacts but also underlying ecosystem developments.
Navigating this volatile landscape requires focus on both macroeconomic factors and technological innovations driving long-term growth.