Bitcoin
and other cryptocurrencies were declining after the Federal Reserve’s decision to pause interest rates Wednesday. Digital assets may be particularly vulnerable to the central bank’s projection of a higher terminal rate later this year.
The price of
Bitcoin
has retreated 0.3% over the past 24 hours to about $25,842.14, slipping below the $26,000 and $27,000 range that has dominated for much of the period since the largest digital asset hit a 10-month high above $30,000 in April.
“The bears may have the upper hand right now,” said Alex Kuptsikevich, an analyst at FXPro. “If so, the declines might accelerate, to $25,700, directly leading to $24,800.”
Even though the Fed kept rates steady for the first time in more than a year, inflation remains above the central bank’s 2% target. Fed officials see more rate hikes later this year. Higher borrowing costs are anathema to crypto by encouraging investors to choose less-risky assets.
The
Dow Jones Industrial Average
and
S&P 500
fell after the announcement on Wednesday.
Other cryptocurrencies were also broadly trading lower.
Ethereum,
the second-biggest coin, was down 1.1%.
Cardano
lost 1.8% and
Polygon
was up 0.9%.
Dogecoin
slipped 0.1%, while
Shiba Inu
climbed 0.2%.
Write to Brian Swint at [email protected]
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