- Bitcoin fell to $74,958 before settling above $75,000.
- The decline also coincided with increased economic growth in traditional markets.
- Crypto stocks fell sharply as short-term volatility hit the risk economy.
The price of Bitcoin fell slightly below $75,000 on Wednesday as the Federal Reserve kept interest rates steady, dimmed the prospect of a rate cut and triggered a massive sell-off in risky assets.
The move weighed heavily on crypto-linked assets, with Coinbase, Riot Platforms, and MicroStrategy among the worst hit.
Bitcoin drops to $75k as Fed holds rates
Bitcoin fell to around the $75,000 level, paring its previous gains after the US central bank decided not to adjust its lending rate, indicating greater caution in reducing interest rates.
The decision bolstered expectations of a long-term bullish environment, which led investors to re-expose to the deteriorating conditions associated with speculative growth issues.
Market data as of writing showed that over the past 24 hours, Bitcoin has fallen slightly by about 1.4% to around $75,156.
The combination of higher yields and global uncertainty has continued to reduce risk appetite, resulting in BTC below $80,000.
Crypto stocks fall amid weak trading signals
The Fed’s in-line-but-hawkish-leaning sentiment rubbed off on crypto-related stocks, which were already under pressure from disappointing measures.
Robinhood ( HOOD ) led the slide, down 14% after reporting a nearly 47% year-over-year decline in cryptocurrency-related trading in the first quarter.
The downward slide is widely interpreted as a sign of declining trading volume and less interest in trading in digital assets.
Despair spread throughout the region.
US crypto exchange Coinbase (COIN) fell 7%, while Bullish (BLSH), CoinDesk’s industry platform, also fell 7%. Gemini (GEMI) fell 5%.
Bitcoin miners also sold off, with Riot Platforms ( RIOT ) and Marathon Digital Holdings ( MARA ) both down 4% to 6% as Bitcoin’s soft price and rising energy prices eased.
MicroStrategy (MSTR), which has the largest Bitcoin business, returned 4%.
Excess fat increases the risk of disease
The decline in sentiment continued in crypto, as the US dollar fell and energy prices rose.
The Dow Jones Industrial Average lost more than 300 points, pressured in part by a surge in oil prices following President Trump’s comments on Iran.
In an interview with Axios on Wednesday, Trump said he would continue the US blockade of the Strait of Hormuz until a nuclear deal with Iran is reached, raising concerns about disruptions to oil supply in one of the world’s most sensitive areas.
Brent crude rose more than 4% above $111 per barrel, while US West Texas Intermediate (WTI) crude rose to $106 per barrel, continuing the upward trend in the market and strengthening the risk that weighs on Bitcoin and crypto stocks.
