Bitcoin touches lowest level since December 2020 after Fed’s 75 bps hike

Bitcoin fell to its lowest point since December 2020 after the Federal Reserve’s (Fed. 75 basispoint interest rate rise. The price of Bitcoin fell nearly 2 percent in the last 24 hours. Now, the crypto market cap stands at $900 billion. It reached $1 trillion as of September 15.

According to coinmarketcap, Bitcoin traded at $18,735, while Ethereum was at $11,272 as of 12 PM (IST).

According to CoinDCX research, Bitcoin reacted with a 6.5 percent swing to the downside and bottomed at $18,600, while Ethereum plummeted from $1,393 directly after the announcement.

In the past seven days Ethereum has dropped 22 percent. Since September 15, when the company announced that it had completed its upgrade to Merge, the fall has been dramatic.

Edul Patel (CEO and cofounder of Mudrex crypto trading platform) stated that ETH prices have been falling since the Merge. This is because miners continue to dump their ETH into the market.

Jerome Powell, Fed chair, stated that the US may continue to see rate increases in future meetings.

CoinDCX stated that “The pressure is still on for a significant increase in the next few month as the FED targets an funds rate above 4% by the end of this year, particularly against the backdrop of brimming pay data and increased service inflation within an overheated labor market.”

The latest 75 bps increase in US interest rate has brought it to 3.25 percent, the highest level since 2008.

Patel said that investors and traders may need to take time to absorb the Fed’s announcement and then get back to market. Therefore, we could see volatile sessions over the next few days.

He said that if Bitcoin can hold above $19,000, then we could see an increase in growth. Ethereum, on the other hand, was seen trading above the $1,200 mark. If miners increase their selling pressure, ETH will likely fall below the $1,000 mark.