The significant downfall was recorded for the first time in three months.
Bitcoin's (BTC) price took a significant hit, dipping beneath the $25,000 threshold for the first time since March 17th.
The financial landscape in the crypto industry has been rocky for the past few weeks, which got even worse after the latest announcement from the Federal Reserve.
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On June 15th, within half an hour, Bitcoin's price dropped by 4%, plummeting from $25,867 to $24,819. Since then, Bitcoin has been fluctuating around the $25,000 mark.
It is worth noting that Bitcoin price has been falling since last week when the US Securities and Exchange Commission filed a lawsuit against cryptocurrency exchanges Coinbase and Binance and the growing macroeconomic uncertainty revolving around the US Federal Reserve's interest rates.
The Federal Reserve's announcement of an interest rate hike pause after a fifteen-month stretch of increases aimed at tackling escalating inflation triggered a sharp price decline. This development occurred roughly three hours before Bitcoin's drastic dip.
While the market was anticipating a rate pause, the Federal Open Markets Committee hinted at potential rate hikes in the future. Such an indication usually dampens investor enthusiasm for riskier assets, including cryptocurrencies.
When commenting on the matter, eToro Market Analyst Josh Gilbert noted:
Much of the positivity we’ve seen from risk assets this year, including Bitcoin, is built on the expectation that inflation will fall and interest rates will peak, and then begin to be cut.
According to Gilbert, Federal Reserve Chair Jerome Powell has emphasized that the pause is temporary, a fact that might pose further challenges for Bitcoin in the long run.
Ether (ETH), the cryptocurrency with the second-largest market capitalization, also experienced a blow, with a decline of over 5.6% from $1,727 to $1,631 in the same timeframe.
Altcoins were not spared either, as several tokens deemed securities in the SEC's lawsuits also experienced a downfall of up to 6%. Among these, Cardano (ADA) recorded a 5.35% decline in the past 24 hours, while Polygon (MATIC) and Solana (SOL) fell by 4.42% and 2%, respectively.
The fall in cryptocurrency prices has also impacted the Crypto Fear and Greed Index, which on June 15th fell to 41, nearing the "fear" zone.
These recent developments underscore the volatility and uncertainties looming over the crypto market. It brings to light the potential challenges Bitcoin and other cryptocurrencies might face due to macroeconomic factors and regulatory stances.
