#bitcoin☀️ slips below $65K as Fed holds rates, hints at September cut
Bitcoin Falls Below $65,000 Amid Fed Decision and Middle East Tensions
Bitcoin's price has dropped below $65,000 following the Federal Reserve's decision to keep interest rates unchanged & reports of escalating Middle East conflicts.
On July 31, Bitcoin ($BTC ) fell to $64,549, marking its first decline below $65,000 since July 25, according to CoinMarketCap. Although it briefly spiked to $65,075, it has remained below this key level & is currently trading at $64,470.
The decline followed the Federal Open Market Committee’s (FOMC) decision to maintain interest rates at 5.25% to 5.5%. Fed Chair Jerome Powell described the economy as expanding at a "solid pace," with positive signs for GDP growth and private domestic final purchases (PDFP), despite a slowdown in consumer spending growth. Powell emphasized the Fed's commitment to reducing inflation from 7% to 2.5%, with a goal of reaching 2% in the future.
Markets had anticipated that the FOMC would not adjust rates until September.
Crypto commentator Seth noted that Bitcoin’s RSI is currently "oversold," suggesting a potential buying opportunity. He also suggested that the FOMC’s decision might have been used to liquidate high-leverage retail investors.
The price drop also follows reports of the assassination of Hamas leader Ismail Haniyeh in Tehran, which added to market uncertainty.
Historically, Bitcoin has reacted to rising tensions in the Middle East. For instance, on April 19, Bitcoin fell 5.44% to $59,698 following explosions reported at Isfahan airport in Iran.
There is optimism for a potential rate cut in September. While Powell hasn’t confirmed it, his tone suggests it’s possible. Moody’s Mark Zandi expects inflation data will match the Fed's forecast, increasing the likelihood of a rate cut.
MN Trading founder Michael van de Poppe believes that Powell's "dovish tone" regarding future rates is favorable for Bitcoin and #Altcoins👀🚀 .
Source - cointelegraph.com
