Key Points
- Bitcoin’s price has dropped below $58,000, a 22% decrease from its all-time high in March.
- The drop is ahead of the U.S. Federal Open Market Committee (FOMC) announcement.
The value of Bitcoin has experienced a significant decrease, falling below the $58,000 mark. The current price hovers around $57,400, which represents a 9.6% drop in the last day.
Bitcoin’s price has been on a downward trend since it reached an all-time high of over $73,000 in March. This decline comes before the U.S. FOMC’s policy decision announcement, which is expected later today.
The Impact of the FOMC Announcement
The Federal Reserve’s policy decision is set to be published at 2 PM ET, with a press conference led by Fed Chair Jerome Powell at 2.30 PM. Market traders are bracing for a potentially significant shift in the stock market.
This anticipation stems from concerns that the Federal Reserve will maintain higher rates for a longer period. Despite expectations of no immediate changes to interest rates due to persistent inflation, there is some optimism for potential rate cuts in the future.
Crypto Market Reaction
The crypto market often exhibits strong reactions to FOMC meetings, usually with significant initial spikes before stabilizing. The price movement prior to the announcement could indicate traders’ preparation for the decision.
The broader crypto market is also trending downward, with the GM30 Index — a tracker of the top 30 cryptocurrencies’ performance — down by 9% to 118.
