Market Turmoil: Bitcoin and Altcoins Rebound Amidst Federal Reserve’s Interest Rate Shift

Bitcoin Sinks Below $100,000, Altcoins Tumble Following Fed’s Hawkish Signals

The crypto market has taken a drastic turn as the Federal Reserve announced its decision to adopt a more cautious stance on interest rates. This sudden shift in policy has sent Bitcoin plummeting below the psychological barrier of $100,000 and altcoins tumbling along with it.

As reported by CoinGecko, the benchmark cryptocurrency dropped 6% in a single day, trading at around $98,900 as the market reacted to Fed Chair Jerome Powell’s hawkish signals. This sudden decline marks a significant reversal from previous highs, where Bitcoin had reached unprecedented levels of over $107,700 just days prior.

The impact is not limited to Bitcoin alone, however, as other major cryptocurrencies have also taken a hit. Ethereum has fallen by 5% to trade at around $3,600, while Ripple and Dogecoin dropped nearly 9% and 8%, respectively.

The true extent of the market’s downward spiral lies in the meme token space, where losses are staggering. Popcat (POPCAT) led the charge with a 20% decline, followed closely by Peanut the Squirrel (PNUT), which lost a staggering 19%. Other notable declines were recorded by Pepe (PEPE), dogwifhat (WIF), Bonk (BONK), and Floki (FLOKI), all of which suffered double-digit losses.

Despite the sharp decline in value, analysts at Morgan Stanley suggest that investors should not be too quick to panic. While this hawkish stance from the Fed may seem like a setback for the crypto market, they believe it could ultimately lead to long-term gains.

Source: cryptobriefing.com