Bitcoin fell below the $25,000 level for the first time since March, as the Federal Reserve opted to keep rates unchanged. However, to the surprise of many, the Fed also forecasted two further hikes in this current cycle. Ethereum reacted negatively to the news, dropping below $1,700.
Bitcoin
Bitcoin plunged to a multi-month low on Thursday, as markets continued to react to the U.S. Federal Reserve’s decision not to increase interest rates.
Chair Powell did forecast two further hikes, with core inflation still higher than the bank would like.
He stated: “I think if you look at the core PCE inflation overall, look at it over the last six months, you’re just not seeing a lot of progress.”
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BTC/USD dropped to an intraday low of $24,820.20 on the news, which comes following a high of $26,040.66 on Wednesday.
As a result of the drop, bitcoin slipped to its weakest point since March 16, when price was at a bottom of $24,200.
Today’s decline came as the 14-day relative strength index (RSI) fell below a support point at 36.00. It is now tracking at 34.55.
Ethereum
Additionally, ethereum (ETH) also tanked, with price falling below $1,700 for the first time in three months.
Following a high of $1,749.16 on Wednesday, ETH/USD hit a bottom at $1,624.14 earlier in the day.
This is the lowest level that ethereum has fallen to since March 15, which is the last time price traded at a floor of $1,620.
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Thursday’s decline comes as price strength moved into oversold territory, with the RSI now at a reading below 30.00
The index now sits at 29.17, which is the weakest point it has reached since November last year, at which time ETH was trading near $1,000.
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