Cryptocurrencies react to central banks’ rate policy and analysts lose risk appetite. However, there is optimism for 2024.
Bitcoin falls and remains below US$27,000 around US$26,600 and Ethereum drops to US$1,596. The cryptocurrency market lost up to 5.2% led by Curve DAO Token.
The decline in these digital assets began to be seen after the latest decision of monetary politics of the Federal Reserve (Fed), which decided not to raise rates at the last meeting, but warned that it is prepared for one more increase in the remainder of the year if necessary and anticipated an upward trend in 2024.
The Fed announcement
The decision of the United States Federal Reserve resolved to maintain rates at the current level of 5.25% to 5.5 and the members of the Federal Open Market Committee (FOMC) maintained their forecast of inflation core forward, which justifies a additional increase this 2023 and only a drop of 50 basis points in 2024.
The pause of the Fed was endorsed by the statements of the president of the entity Jerome Powell, who assured that “it is more likely that it will be pertinent to raise the rates again in either of the two remaining meetings this year to not be.
On the other hand, the Binance exchange presented a motion requesting the dismissal of the lawsuit against you by the Securities and Exchange Commission (SEC).
What’s next for Bitcoin
Against this backdrop, the cryptocurrency market recorded declines in its global capitalization and indices that measure investors’ appetite for risk indicate that they are in a fear zone.
However, the projections for BTC in the future are positive. For example, the analyst Yoddha believes that BTC can head towards the US$50,000 at the end of the year. While, CryptoRoverexpects the resistance near the US$27,000 and BTC heads towards the US$32,000.
Source: Ambito
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