Bitcoin Slides to Lowest Level in Over Two Months as Investors Await Fed Decision
Bitcoin, the world’s largest cryptocurrency, plunged to its lowest level since February as investors closely monitored the Federal Reserve’s upcoming interest rate decision. The digital currency dropped as much as 7% to $56,526.00, its lowest level since Feb. 27, according to CoinMetrics. It was last lower by about 4% at $57,413.94.
Bitcoin has been trading in a tight range recently, with key catalysts such as U.S. exchange traded funds and the halving event now in the past. Its retreat from March all-time highs intensified this week amid broader risk-off sentiment, with the cryptocurrency down about 10% for the week and posting its worst month since November 2022.
Investors are eagerly awaiting the Federal Reserve’s interest rate decision, with the central bank expected to hold rates steady at its two-day policy meeting. Clues from Fed Chair Jerome Powell on future rate moves will be closely watched, as the broader macro backdrop has deteriorated for assets like crypto that thrive on liquidity, according to Geoff Kendrick, Standard Chartered’s head of digital asset research.
Despite the recent downturn, Bitcoin investors remain optimistic about a strong recovery later this year, citing the positive impact of the halving event on reducing bitcoin supply. However, analysts warn of potential price consolidation in the coming weeks due to macro and geopolitical pressures.
As the cryptocurrency market continues to navigate through uncertain times, all eyes will be on the Federal Reserve’s decision and its implications for the future of Bitcoin and other digital assets.