Following the Federal Reserve’s decision to keep the Federal Funds Rate at its 23-year top of 5.25%–5.5%, Bitcoin (BTC) suffered a vast market setback. This is the fourth day in a row that the Fed has kept interest rates unchanged, which has caused the BTC/USD pair to fall. Following careful deliberation, the Federal Reserve decided to maintain the Fed funds rate at its elevated range of 5.25%–5.5%.
The central bank’s commitment to tackling economic issues, including worries about inflation and preserving price stability, is reflected in this decision. The decision by the Federal Reserve as been addressed as a cautious approach to controlling the state of the economy and reining in inflationary pressures.
BTC Struggles Within the 0.9% Low Area, Encounters a Dip
As of press time, the BTC/USD pair has continued to struggle within the 0.9% low area as of this morning to trade for slightly $42,200. The BTC is looking to exceed the 50-day moving average line amid the macroeconomic pressures. The said 50-day moving average is synonymous with BTC’s top-performing post-ETF trading.
The 42,800 current price mark is making the coin nearly impossible to overcome. The BTC is still higher than the United States dollar by over 5% over the week. This is playing out amid the unfortunate dip that played out during the so-called red year tool dare. A prediction posted on Proactive Australia platform says that the BTC is a bit higher than the United States dollar by over 50% within the week after dipping for three straight days.
Stakeholders Recall Federal Reserve Board Rejection of Application by Wyoming
A commentary by William Farrington, a market watcher from Proactive, reveals that technological improvements and adoption patterns are not the only factors that affect market dynamics; the broader economic environment, regulatory changes, and monetary policies also play a role.
Investors have had to reassess their holdings and risk exposure in light of the changing market environment due to the Federal Reserve’s decision to keep interest rates stable. At the same time, the Federal Reserve Board turned down an application for the Federal Reserve System by Wyoming cryptocurrency bank.
An official of the Federal Reserve made this public on Friday, officially making it a significant setback to the entire cryptocurrency community and industry alike. This decision will affect some influential cryptocurrency stakeholders’ plans to create a mainstream cryptocurrency brand acceptable to the United States banking industry.
The cryptocurrency community is hoping for the Custodia Bank application, which has lasted over two years, to act as the bridge for mainstream cryptocurrency banking. The implication of approving this request will amount to having complete access to most Federal Reserve services catalog, including the electronic payment system.
Ethereum Other Altcoins Experience The Same Fate, Struggles Through $2,272
On the other hand, Ethereum has maintained its position as the second biggest cryptocurrency in the world amid the 2.5% low pricing against the dollar. As of last night, ETH has continued to underperform, an event that has persisted till this morning.
As of press time, the price of Ethereum to the U.S. dollar was revolving around $2,272. The broad altcoin sector also suffered a little loss against the dollar. The affected altcoins include Binance (BNB), Cardano (ADA), Ripple (XRP), and Avalanche (AVAX).
These digital assets lost mid-single digits from their market capitalization due to unfavorable price movements. As of press time, the market capitalization of cryptocurrency worldwide is $1.62 trillion, with the BTC dominating by 52.6%.