Bitcoin plunges 3% as Fed keeps rates unchanged and Powell hints at September rate cut

bitcoin price fell 3% over the past 24 hours and lost the key $65,000 support as the US Federal Reserve kept rates unchanged and Chairman Jerome Powell hinted at a rate cut in September.

Following the decline of the bitcoin price, the bitcoin/”>crypto leader is trading at $64,254.51 at 3:55 am EST.

<img decoding="async" alt="bitcoin's $10,000 scenario is coming into play as btc drops below $19,000 and extends losses” src=”https://assets.finbold.com/uploads/2022/06/bitcoin-10k-scenario-in-play-as-btc-slumps-below-19k-extending-losses-1024×684.jpg”/><img decoding="async" src="https://assets.finbold.com/uploads/2022/06/bitcoin-10k-scenario-in-play-as-btc-slumps-below-19k-extending-losses-1024×684.jpg” alt=”bitcoin's $10,000 scenario is coming into play as btc drops below $19,000 and extends losses”/>

Cryptocurrency market cap falls as investors adjust portfolios following Federal Reserve decision

The Federal Open Market Committee (FOMC) decided to leave interest rates between 5.25% and 5.5%. But risks of a further weakening in the labor market are prompting the Fed to open the door to a possible rate cut next month.

<blockquote class="twitter-tweet” data-width=”550″ data-dnt=”true” wp_automatic_readability=”6.4675324675325″>

Jerome Powell (Chairman of the Federal Reserve):
– “A reduction in our reference rate could be on the table as early as the next meeting in September.”twitter.com/hashtag/FederalReserve?src=hash&ref_src=twsrc%5Etfw”>#Federal Reserve twitter.com/hashtag/FOMC?src=hash&ref_src=twsrc%5Etfw”>#FOMC twitter.com/hashtag/Video?src=hash&ref_src=twsrc%5Etfw”>#Video image.twitter.com/ICCnljanQP

—Kevin Svenson (@KevinSvenson_) twitter.com/KevinSvenson_/status/1818726517435670883?ref_src=twsrc%5Etfw”>July 31, 2024

With the next potential interest rate cut delayed until September, investors are rebalancing their portfolios to limit exposure to risky asset classes such as cryptocurrencies.

In the last 24 hours, the cryptocurrency market reacted as expected and suffered a drop of more than 3% in its valuation, according to CoinMarketCap dataRising tensions in the Middle East helped investors adopt a more risk-averse stance.

He crypto/fear-and-greed-index/#google_vignette”>Cryptocurrency Fear and Greed Indexa key tool used to gauge investor sentiment in the cryptocurrency market, also fell 9 points to a neutral score of 52 over the past 24 hours. Just a week ago, the index signaled greed in the market with a score of 68.

Big name meme coins take a hit from bitcoin crash

Meme coins emerged as the biggest losers in the latest trading session with the sector's market cap falling 4.6% to $49.2 billion, according to CoinGecko.

Dog-themed worksheet dog hat (WIF) was the hardest hit, losing 12% of its value in the past 24 hours. It has plummeted 20% in the past week..

The biggest losers of 24 hours (Source: CoinMarketCap)

Mog Coin (MOG) was the second-biggest loser in 24 hours after its price dropped by over 11%. Book of Meme (BOME) and Solana’s meme coin Bonk (BONK) also made their way into the list of biggest losers in 24 hours.

With meme coin titans in free fall, meme coin fans may turn to pre-sale tokens not yet available on the open market to wait out the bearish storm.

Among the analysts' favorites are projects such as Pepe Unchained (PEPU) and PlayDoge (PLAY). PEPU has surpassed $6.7 million in funding raised, while PLAY is close to hitting $6 million.

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