Bitcoin price has initiated a fresh decline below $25,000 as investors digest the latest interest rate decision by the US Federal Reserve. At the time of writing, the crypto leader was trading at $24,983.90 after crashing nearly 4% in the past 24 hours. Bitcoin’s total market cap has dipped by more than 4% over the last day to $484 billion, while its total volume increased by more than 17%.
Bitcoin price has been treading waters for the past few days as investors weighed the impact of the US Securities and Exchange Commission (SEC) lawsuits against Binance and Coinbase, the Fed’s monetary policy decision, and other macroeconomic uncertainties. Bitcoin, the largest cryptocurrency by market cap, has plunged by more than 5% in the past week and seems set for more downside.
Major altcoins, including Ethereum, XRP, Cardano, Polygon, and Polkadot, have also sunk into negative territory as the Federal Reserve announced a hawkish pause in its funds rate. Ethereum, the largest altcoin by market cap, dipped more than 4% in the last day to below the crucial level of $1,7000. At the time of writing, the ETH price was trading at $1,636.55.
The Federal Open Market Committee (FOMC) announced its first reprieve in its aggressive 15-month interest rate hike campaign. As anticipated, the central bank paused its benchmark rate hike for June following 10 consecutive interest rate hikes. However, its pause had a sting in the tail as the Fed signaled its support for two more interest rate hikes in the year, including one to be implemented at its next July meeting.
According to Fed chair Jerome Powell, the US central bank intends to further squeeze the world’s largest economy to curb the persistently high inflation. The US dollar slid, but edged higher from four-week lows, following the Fed’s announcement. The 2-year Treasury yield hit an intraday high of 4.77% on Wednesday, its highest level since March 20, before pulling back further, while the 10-year Treasury yield fell to 3.8%.
Bitcoin Price Outlook
Bitcoin price failed to remain positive after the Fed’s monetary policy decision, crashing to a 3-month low below $25,000. As highlighted on the daily chart, the asset has failed to sustain its position above the 50-day and 200-day exponential moving averages, as well as the 100-day and 200-day simple moving averages. Its Relative Strength Index (RSI) has dipped below the signal line to 35, while the Moving Average Convergence Divergence (MACD) indicator hints at more downside.
Consequently, the Bitcoin price is likely to fall further in the ensuing sessions amid macroeconomic uncertainties. A downward trajectory will have bears eyeing the next support levels at $24,500 and $24,000. On the flip side, the next resistance levels to watch will be $25,280 and $25,5000.