The most important central bank meeting this quarter is behind us.
Jerome Powell and the entire FED made a decision yesterday, which, although expected, still caused considerable movements on the stock exchanges.
The declines in the main cryptocurrencies are only the beginning of the reshuffle, because capital is fleeing for the first time from literally all assets – even safe havens.
The FED’s decision extinguishes the entire upward movement in Bitcoin
Yesterday o 19:00 Polish time, we received the decision of the Federal Reserve regarding interest rates in the USA.
Fed decision left interest rates unchanged 3.50%-3.75%.
There is no surprise, but until recently the market was pricing in a much more optimistic scenario for the coming months.
The macroeconomic situation has become very complicated due to the ongoing armed conflict in the Middle East. Rising oil prices systematically fuel fear of inflation.
The head of the Federal Reserve yesterday dashed hopes for a quick return of cheap money.
Notice that the median hasn’t changed, but there has been a big move by committee members toward fewer rate cuts
– he admitted JeromePowell.
IN 2026 so we will probably only have one cut this year. This main conclusion from yesterday’s meetingwhich immediately hit all assets.
Will Powell’s Speech Drop Bitcoin’s Price?
We didn’t have to wait long for a bloody reaction on the charts.
After Powell admitted that the new Iran war and the oil conflict are the biggest problems for the Fed right now, Bitcoin he dived close 2.7%testing local support in the surrounding areas oscillating at USD 69,355.
Even before the Federal Reserve’s announcement, we were seeing well over USD 400 million in liquidations across the market.
What’s interesting is this Ethereum (ETH) took almost the same toll as the “bitek” itself.
Why?
Traders simply flew blindly to where there was the greatest volatility and simply blew a lot of capital into long positions with very high leverage.
If you were hoping for an immediate return to crazy growth, unfortunately, you will have to quickly arm yourself with angelic patience.
Whales they will not artificially inflate the charts now, when the specter of persistent inflation hangs on the horizon again.
Speculative capital is completely evacuated from the market, as we are seeing declines even in gold and silver.
Altcoins are looking for a bottom, and there is one “dark horse” on the horizon
The situation on many altcoins looks extremely bad right now.
However, there is a small light at the end of the tunnel.
Just look at the project Hyperliquid (HYPE).
This one did over 100% from the local low, while the rest of the alt segment bleeds out more and more.
Solid foundations and a well-developed network make “smart money” willing to invest their funds there.
Either way, the entire crypto sector needs a moment to take a deeper breath now. Be careful with your wallets, because the next few days may seem like a wild ride.
The article does not constitute investment advice.
