Crypto Market Takes a Hit as Fed Delivers Hawkish Rate Cut
The crypto market has been dealt a significant blow following the Federal Reserve's hawkish rate cut decision. While the 25bps reduction in the federal funds rate to 4.25% to 4.50% was in line with market expectations, the Fed's decision to slow down rate cuts in 2025 has sent shockwaves through the market.
Bitcoin has plummeted 5.4% to $100,314, while Ethereum has suffered a 6% decline over the past 24 hours. Other major cryptocurrencies, including XRP, Solana, and Dogecoin, have also taken a hit, with losses ranging from 7% to 10%.
The crypto market's response to the Fed's decision is likely driven by concerns over the impact of higher interest rates on the economy and the potential for reduced liquidity in the market. The Fed's hawkish stance has also led to a surge in the US dollar index, which has further contributed to the decline in crypto prices.
While the current downturn may be a cause for concern, it's worth noting that the crypto market is highly volatile and subject to rapid fluctuations. Some analysts believe that the market will recover in the long term, driven by the underlying fundamentals of the crypto space.#BinanceAlphaTop5 #MarketPullback #MarketCorrectionBuyOrHODL?