FOMC Holds Rates Steady, Crypto Prices Drop Amid Powell’s Decision

The Federal Open Market Committee (FOMC) decided to maintain U.S. interest rates at their current levels, causing an immediate decline in cryptocurrency prices. Traders had anticipated a possible rate cut from Jerome Powell, which would have marked the first reduction since March 15, 2020. This decision disappointed many who hoped for a more favorable monetary policy stance.

According to Santiment, the social volume surrounding the FOMC, Federal Reserve (Fed), and Jerome Powell saw a notable increase. The blue line on the chart represents this surge, indicating the highest level of discussion since April. Concurrently, the red bars signify the social volume related to negative keywords like “sell,” “selling,” “sold,” and “bearish.” Despite this increase, there is no significant fear or major sell-off discussions among the crowd.

The green line on the chart tracks Bitcoin’s (BTC) price movements, which have recently experienced a slight retracement. This decline aligns with the FOMC meeting and the interest rate decision. Despite the initial drop, the crowd has not yet shown significant fear or engaged in widespread selling. The sentiment could shift if Bitcoin approaches the $60,000 mark, but for now, the market remains relatively stable.

As the emotional sell-offs subside, markets are expected to flatten out unless another major event impacts the crypto landscape. Historically, a rate cut would be a bullish signal for crypto traders, potentially leading to a higher performance for both stocks and crypto for the remainder of 2024.

At press time, Bitcoin’s price is $63,835.43, with a 24-hour trading volume of $35,950,122,924. This represents a 2.75% decline over the last 24 hours and a 0.64% decline over the past week. With a circulating supply of 20 million BTC, Bitcoin’s market capitalization is valued at $1,259,731,818,100.