Bitcoin slips below $64,000 after Fed Chair Powell signals smaller rate cuts
Cryptocurrency markets continued their downward trend on Tuesday after Federal Reserve Chair Jerome Powell's comments dampened expectations of significant interest rate cuts. Bitcoin fell below the $64,000 mark, while Solana, XRP, and Dogecoin also experienced declines.
Fed Chair Powell indicated on Monday the U.S. central bank would likely stick to quarter-percentage-point cuts henceforth after new data boosted confidence in economic growth and consumer spending.
Investors are also keeping an eye on rising geopolitical tensions after Israel's ground invasion of Lebanon appeared to be getting underway early on Tuesday.
As of 1:07 pm IST, Bitcoin had slipped 0.9% to $63,935, while Ethereum rose 0.3% to $2,644. Meanwhile, The global cryptocurrency market cap fell by 0.91% to approximately $2.25 trillion in the past 24 hours.
"Profit-taking and uncertainty surrounding comments made by the Federal Reserve on interest rates are attributed to the recent sell-off," said Shivam Thakral, CEO of BuyUcoin.
Avinash Shekhar, Co-Founder and CEO of Pi42, commented on the market’s bearish trend, stating, "Bitcoin dipped to $63,500, and several altcoins fell more than 3%. This trend may be short-term, but the market remains highly volatile as the U.S. elections approach."
He also highlighted that Powell's remarks on a commitment to lower interest rates have restored confidence, suggesting, "Minor corrections are expected, and altcoins, particularly Ethereum, may see growth. If Ethereum consolidates above $2,700, it could rise to $2,900."
Among altcoins, Solana (-0.3%), XRP (-3.6%), Dogecoin (-3.5%), Cardano (-1.8%), Shiba Inu (-1%), and Chainlink (-0.5%) also recorded declines.
The volume of all stablecoins stood at $74.5 billion, representing 91.8% of the total crypto market’s 24-hour trading volume, according to CoinMarketCap.