difficult evening for BTC

Difficult end of evening for crypto

Bitcoin had a rather interesting week so far but the evening quickly turned into a nightmare. Indeed, although the FED’s announcements are apparently positive, they have not helped the price of Bitcoin to survive.

However, everything started very well for BTC with a drop in interest rates. With a reduction of 25 points, these are now set between 4.25 and 4.50%. This follows the latest cuts which took place in the second part of 2024.

However, this announcement did not really surprise the crypto market, since the latter was overwhelmingly banking on a lowering of interest rates in the United States. The FED’s announcement therefore went in this direction.

Delicate announcements from the FED

Despite everything, the party was not there for the price of Bitcoin since the largest cryptocurrency in the world ended the day in the red.

The token even “bled” at the end of the day with a drop of more than 4%.

As a result, the price of Bitcoin fell below $102,000 and went to fill its CME gap which had been opened last weekend before reaching a new ATH. This, while it was trading at $107,000 at the start of the day.

The reason for this fall undoubtedly has to do with the FED’s announcements. Indeed, the latter may have reduced interest rates by 25 points, but it has announced fewer reductions for the years 2025 and 2026 to come. This, due to inflation which is still difficult to manage with a new rise recently, the fall in interest rates should be less rapid than expected.

At the same time, the rest of the crypto market is also having a difficult day, with declines for the majority of assets.

Moral of the story: the FED gave us a nasty surprise and the surprise is big.