Bitcoin slipped below $63,300, while Ethereum dropped under $1,900, shaking off recent optimism as the Federal Reserve kept interest rates steady but left the door open for hikes. The market reacted swiftly to the central bank’s hawkish stance, despite no immediate rate change.
Federal Reserve’s Cautious Pause
The Fed voted 9-3 to hold rates at 3.50%-3.75%, aligning with expectations but revealing fractures within its ranks. Three policymakers pushed for a 25-basis-point increase, signaling lingering concerns about inflation staying stubbornly above the 2% goal. The statement described economic activity as solid, powered by strong employment and investment, yet persistent energy supply shocks continue to fuel price pressures.
This cautious message suggests the Fed isn’t done tightening monetary policy, keeping markets wary of further rate hikes if inflation doesn’t ease as hoped. This stance stands in contrast to hopes that the tightening cycle might soon end.
Technical Pressure on Bitcoin
Bitcoin’s price action mirrored investor caution, slipping below its key moving averages on the four-hour chart. It now hovers near its 200-period moving average around $63,200, a critical support level. Breaching this could expose Bitcoin to tests of the recent swing low near $62,800. Recovery attempts face resistance between $64,200 and $64,700, where several moving averages converge, creating a technical choke point.
The broader crypto market followed suit, with total capitalization contracting to roughly $2.17 trillion. This downturn came despite continued institutional inflows into spot Bitcoin ETFs, indicating that risk appetite cooled sharply after the Fed’s hawkish tone. Previous coverage noted Bitcoin’s resilience amid Fed pauses, but this latest message has investors reevaluating the space, as seen in Bitcoin’s cautious trading near $64K.
This material is for informational purposes only and does not constitute financial advice.
