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Prospects for higher interest rates tend to weigh down cryptocurrencies.
Dreamstime
Bitcoin
and other cryptocurrencies were declining after the Federal Reserve’s decision to pause interest rates Wednesday. Digital assets may be particularly vulnerable to the central bank’s projection of a higher terminal rate later this year.
The price of
Bitcoin
has retreated 0.3% over the past 24 hours to about $25,842.14, slipping below the $26,000 and $27,000 range that has dominated for much of the period since the largest digital asset hit a 10-month high above $30,000 in April.
“The bears may have the upper hand right now,” said Alex Kuptsikevich, an analyst at FXPro. “If so, the declines might accelerate, to $25,700, directly leading to $24,800.”
Even though the Fed kept rates steady for the first time in more than a year, inflation remains above the central bank’s 2% target. Fed officials see more rate hikes later this year. Higher borrowing costs are anathema to crypto by encouraging investors to choose less-risky assets.
The
Dow Jones Industrial Average
and
S&P 500
fell after the announcement on Wednesday.
Other cryptocurrencies were also broadly trading lower.
Ethereum,
the second-biggest coin, was down 1.1%.
Cardano
lost 1.8% and
Polygon
was up 0.9%.
Dogecoin
slipped 0.1%, while
Shiba Inu
climbed 0.2%.
Write to Brian Swint at [email protected]
Source: https://www.barrons.com/articles/bitcoin-ethereum-price-crypto-markets-today-c5584ab?siteid=yhoof2&yptr=yahoo