After the Federal Reserve’s Interest Rate Decision, the Price of Bitcoin is Approximately $19,000


Following the decision by the Federal Reserve to raise interest rates by 75 basis points on Wednesday, the price of bitcoin remained in the general area of $19,000.

Analysts see bitcoin’s summer low of $17,708 as the asset’s crucial test for support.

After trading in a volatile $1,000 range, Bitcoin is very much flat on the day.

The Bitcoin price has decreased by around 3% over the past five days and by 60% this year.

The consensus on Wall Street’s expectation for a 75-basis-point rate in September was predicted to send cryptocurrencies on a selloff. 

Bitcoin Price Drop

According to a senior market analyst with Oanda, Edward Moya, “Bitcoin is still searching for a bottom.” He also added that the most bearish investors anticipate the coin to fall as low as $10,000 before the end of the year. “Bitcoin is still searching for a bottom,” Moya said. “Bitcoin is still searching for a bottom.” “But the bigger concern is whether it will retest summer lows,” he pointed out.

The U.S. dollar (DX-Y.NYB) has surged to highs not seen for 20 years, which has proven detrimental for crypto and other risk assets.

“A strengthening dollar is unfavorable for risk assets,” said Martin Leinweber, a digital asset strategist with MarketVector. “However, the price of oil is coming down, and it’s a hint that inflation may have reached its top,” he said. Yahoo Finance cited these quotes.

Even at its lowest point this summer, the value of a bitcoin was still 4,403 times what it was just five years ago. In the meantime, the overall market capitalization of cryptocurrencies has increased by 85%, going from $133 billion to $932 billion, despite the fact that this figure is still relatively low compared to institutional investors.

Quant asset management firm IDX, which has shifted all its crypto holdings back into cash, isn’t expecting to re-enter the market soon.

As per Ben Mcmillan,  the company’s founder and chief investment officer, they have been very much in a risk-off posture for a while.

Bitcoin is the first cryptocurrency that operates independently from governments. Its inception coincided with the global financial crisis, and its purpose was to serve as a kind of currency for the internet.

Its notoriety among gold enthusiasts, adherents of Austrian economics, Silicon Valley tech elites, and investors eager to take risks has, over the course of the years, brought it to the attention of Wall Street and policymakers worldwide.

Ether, the second largest cryptocurrency, has experienced a decline of 16% over the past week, and it is currently trading at $1,339 as of Wednesday afternoon. This comes just a week after Ether received an update called Merge. Though a tech milestone for its blockchain architecture, the Merge has pushed the second largest cryptocurrency back into the SEC’s crosshairs.

Although the total market cap value of cryptocurrencies has dropped by two-thirds since its all-time high in November of 2017, financial institutions continue looking for opportunities in the sector. On Tuesday, Nasdaq and the Japanese bank Nomura launched digital assets businesses.

IDX’s McMillan is taking a historical view on how crypto is now trading, similar to how other investors are doing so. He compares it to a speculative technology company during the “dot-com” bubble when the era’s top and worst performers appeared identical on a chart.

McMillan stated that there was a time when Amazon and declined by 90%. One went out of business, while the other went on to become a major player in their sector.


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About the author: Valerie Ablang is a freelance writer with a background in scientific research and an interest in stock market analysis. She previously worked as an article writer for various industrial niches. Aside from being a writer, she is also a professional chemist, wife, and mother to her son. She loves to spend her free time watching movies and learning creative design.