Bitcoin Stumbles as Post Rate Hike Rally Fades
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The most recent cryptocurrency rise, especially in Bitcoin (BTC), was put to a halt by the US Federal Reserve’s decision to raise interest rates by 50 basis points. Bitcoin’s price fell below the critical $18,000 mark as the market as a whole suffered losses.
The Consumer Price Index figures, which are used to determine the country’s inflation rates, were released by the US Bureau of Labor Statistics on December 13. The result for November was 7.1%, which was less than the anticipated 7.3%. Not surprisingly, this influenced the direction of the market, and shortly after, the price of BTC skyrocketed past the $18,000 mark.
Jerome Powell, the Fed chairman, announced a 50 basis point increase in interest rates during yesterday’s FOMC meeting, yet this had the exact opposite effect on the price.
Bitcoin rose to a high of about $18,360 yesterday, but it was unable to maintain the rally and is now trading at about $17,387.
Altcoins Fared Worse Than Bitcoin
Meanwhile, although the entire market is in the red, it seems like altcoins are suffering more than Bitcoin. This is seen in the dominance of BTC. It rose by 0.4% over the past 24 hours, showing that BTC’s market share is rising in comparison to the rest of the market.
At press time, Ethereum (ETH) and most of the top 15 cryptocurrencies are down by around 5%, according to data from CoinMarketCap. TON is currently down roughly 8.9% after giving up many of its recent gains. Due to this, it is also the lowest performer among the top 50 currencies by market capitalization. Notably, though, it has increased by about 31% over the past seven days.
With this most recent decline, the overall market capitalization of cryptocurrencies fell under $900 billion.
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