Bitcoin’s price dropped below $65,000 after the US Federal Reserve decided to keep interest rates unchanged and amid growing tensions in the Middle East. The cryptocurrency’s value fell to $64,549, marking the first time it dipped below this key level since July 25, according to CoinMarketCap. It briefly climbed back to $65,075 but soon fell again, currently trading at $64,470.<\/p>\n\n\n\n
The Federal Open Market Committee (FOMC) decided to maintain the interest rates at a range of 5.25% to 5.5%, which was widely anticipated. Fed Chair Jerome Powell noted that the economy is growing at a “solid pace,” with positive indicators for GDP growth and Private Domestic Final Purchases (PDFP). However, consumer spending has slowed, aligning with the Fed’s efforts to curb inflation. Powell emphasized the Fed’s commitment to bringing inflation back to their 2% target, down from a previous high of 7%.<\/p>\n\n\n\n
Crypto commentator Seth highlighted that Bitcoin’s relative strength index (RSI) indicates that the asset is “now oversold,” which could be a potential buy signal. He suggested that the FOMC’s decisions often catch inexperienced traders off guard, particularly those using high leverage.<\/p>\n\n\n\n
The decline in Bitcoin’s price also coincided with reports of escalating conflicts in the Middle East, including the alleged assassination of Hamas leader Ismail Haniyeh in Tehran, Iran. Historically, Bitcoin’s price has been sensitive to geopolitical tensions. For instance, on April 19, reports of explosions at Isfahan airport in Iran led to a significant drop in Bitcoin’s price within hours.<\/p>\n\n\n\n
Observers are optimistic about a potential rate cut in September. While Fed Chair Powell did not confirm this possibility, his cautious optimism has led some to speculate on a future cut, depending on the upcoming inflation data. Moody’s Analytics chief economist Mark Zandi supports this view, suggesting that the inflation data is likely to align with the Fed’s forecasts, making a September rate cut probable.<\/p>\n\n\n\n
In contrast, Michael van de Poppe, founder of MN Trading, believes that Powell’s “dovish tone” could positively impact Bitcoin and other cryptocurrencies.<\/p>\n","protected":false},"excerpt":{"rendered":"
Bitcoin’s price dropped below $65,000 after the US Federal Reserve decided to keep interest rates unchanged and amid growing tensions in the Middle East. The cryptocurrency’s value fell to $64,549, marking the first time it dipped below this key level since July 25, according to CoinMarketCap. It briefly climbed back to $65,075 but soon fell […]<\/p>\n","protected":false},"author":6,"featured_media":6294,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[257,43,18],"tags":[],"class_list":{"0":"post-10770","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin","8":"category-general-news","9":"category-market-updates"},"acf":[],"yoast_head":"\n