The Fed presented a mixed picture of the economy, sending crypto downward. What could be next for the crypto market?
The crypto market unexpectedly dropped after the June 15 Fed meeting, leading to new discussions around its future. While the Fed Chair paused the interest rate hike for the time being, he cautioned about further hikes at the end of the year, which could have led to crypto reacting in this manner.
The market suddenly declined after the decision, with many tokens witnessing losses. With the hit, Bitcoin fell below $25000 and is currently trying to cross the mark.
While several experts were concerned about the market’s liquidity with eventual rate hikes in 2023, many analysts also remained positive. They hinted toward improving global economic conditions, which might boost the crypto markets soon. Most of them also described the decline as a knee-jerk reaction and indicated the markets could recover soon.
Most experts believe that crypto volatility might increase in the next few days until the market consolidates near a level where enough support is gained. For now, tokens like ETH, Bitcoin, and others could look towards recovering their losses.
BTC/USD 1D price chart
Bitcoin is currently trading at around $24800 on June 15, 2023, with BTC/USD down by around 4.2% in the previous 24 hours. BTC/USD is trading below its 20-day EMA (26,547.36) as BTC’s 24-hour volume went over $15 billion. Bitcoin has seen around 50.60% returns on a year-to-date basis.