Fed Raises 50 Basis Points, Sending BTC Below $18K As Cryptocurrency Rally Cools (Market Watch)

The US Federal Reserve’s decision to raise interest rates by 50 basis points put an end to the latest rally in the cryptocurrency. Bitcoin fell below $18,000 as the entire market took a beating.

Bitcoin price fell below $18k

On December 13, the US Bureau of Labor Statistics released Consumer Price Index figures, which are used to measure inflation levels in the country. They came in at 7.1% for the month of November, which is lower than the expected 7.3%. Naturally, this led to a rally in the market, and the price of BTC skyrocketed to over $18,000 shortly after.

However, during yesterday’s FOMC meeting, Fed Chair Jerome Powell announced another 50 basis point rate hike, which had exactly the opposite effect on the rate.

Source: Binance via TradingView

As shown in the above chart, BTC price reached an intraday high around $18,387 (on Binance) but failed to sustain the rally and is currently trading around $17,600.

Altcoins are even worse

The entire market is painted red, but altcoins seem to be doing worse than bitcoin. BTC dominance is proof of that. It increased by 0.4% in the last 24 hours, which indicates an increasing share of Bitcoin compared to the rest of the market.

The above is also visible in this heat map:

Source: Quantify Crypto

It is clear that altcoins lost more compared to BTC. ETH is down about 2.5%, BNB has lost more than 3%, and so have DOGE and LTC. TON has given back much of the gains of the past few days and is currently down around 8.5%. This also makes it the worst performer among the top 100 currencies by market capitalization. However, it should be noted that it is still up about 30% over the past seven days.

On the other hand, XDC and IMX managed to rally ahead, with gains of 7% and 4.7%, respectively.

The total cryptocurrency market cap has been reduced below $900 million in this latest decline.

The Fed’s post raises interest rates by 50 basis points, sending bitcoin below $18,000 Cryptocurrency Rally (Market Watch) appeared first on CryptoPotato.

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