"What did Powell say that caused the price of BTC to fall like that?'
The price of cryptocurrency king Bitcoin (BTC) plummeted below $24,900 even as the Federal Open Market Committee (FOMC) meeting announced a temporary halt in interest rate hikes as expected in financial markets.
This is because the Chairman of the Federal Reserve (Fed) of the United States (US) Jerome Powell signaled that they may raise interest rates in 2023 but not in the near future.
As such, investors are concerned that the price of BTC will experience a pump-and-dump situation if the Fed acts in such a way, however they will still scrutinize the Fed's message about a possible interest rate hike during the next FOMC meeting.
There is no denying that the crypto market is capable of reacting positively or negatively through the decisions made by the US central bank in determining whether interest rates should be increased or not.
According to Powell during the FOMC meeting, the Fed, which aims to lower the inflation rate to its target of 2%, revealed that the majority of policymakers plan to raise interest rates at the end of this year.
However, in addition to explaining that the US central bank will not raise interest rates in July 2023, Powell also said that the majority of Fed officials predicting interest rate cuts in 2024 means that investors may be more interested in risky assets such as BTC.
As of this writing, BTC price plunged by 3.00% at $25,185 in the last 24 hours with a market capitalization of $488 billion while Ethereum (ETH) slipped 5.07% at $1,653 and Ripple (XRP) was down 6.47% at $0.48.
