The US Federal Reserve’s decision to raise interest rates by 50 basis points put an end to the most recent crypto rally. Bitcoin price fell below $18K as the entire market took a beating.
Bitcoin Price Drops Below $18K
On December 13, the US Bureau of Labor Statistics released figures for the Consumer Price Index, which is used to measure inflation levels in the country. They reached 7.1% in November, below the expected 7.3%. Naturally, this led to a surge in the market and the price of BTC skyrocketed to over $18K soon after.
However, during yesterday’s FOMC meeting, Fed Chairman Jerome Powell announced another 50 basis point rate hike, which had exactly the opposite effect on price.
Source: Binance via TradingView
As seen in the chart above, the BTC price reached an intraday high of around $18,387 (on Binance) but failed to sustain the rally and is currently trading around $17,600.
Altcoins have it worse
The whole market is painted red, but it seems that altcoins have it worse than Bitcoin. BTC’s dominance is a testament to this. It rose 0.4% in the last 24 hours, indicating the growing share of BTC relative to the rest of the market.
The above is also visible in this heat map:
Source: quantify crypto
It is clear that altcoins lost more compared to BTC. ETH is down around 2.5%, BNB is down over 3%, as are DOGE and LTC. TON lost many of the gains of the last few days and is currently down 8.5%. This also makes it the worst performer of the top 100 coins by market cap. However, it is worth noting that it was still up almost 30% in the last seven days.
On the other hand, XDC and IMX managed to take the lead, posting gains of 7% and 4.7%, respectively.
Total cryptocurrency market capitalization dipped below $900 million in this latest drop.
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TradingView cryptocurrency charts.
This post Fed Raises Rate By 50bps, Sends BTC Below $18K As Crypto Rally Cools Down (Market Watch)
was published first on https://cryptopotato.com/fed-hikes-rate-by-50bps-sends-btc-below-18k-as-crypto-rally-cools-off-market-watch/