Bitcoin, Ethereum, Dogecoin Drop After Jerome Powell's Comments On Future Rate Hikes: Analyst Sees King Crypto In Bull Market As Long As It Holds This Level

Major cryptocurrencies took a dive in response to hawkish comments by Fed Chair Jerome Powell, adding to the turbulence that the crypto industry has experienced this week.

What Happened:  Bitcoin has taken a dive below the $25,000 mark for the first time since March 17. 

The world's largest cryptocurrency was hovering around $26,000 in the past week, as the market responded to the SEC’s legal action against crypto exchanges Coinbase and Binance. 

Additionally, there were concerns about economic uncertainty caused by interest rate signals from the Federal Reserve. The sharp drop in price coincided with the Federal Reserve’s announcement of a pause on interest rate hikes, following a fifteen-month-long campaign of rate increases to curb surging inflation. 

In his comments, Federal Reserve Chair Powell reassured the markets of the central bank’s commitment to driving annual inflation down to 2.5%, which currently stands at 4%.

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At the time of writing, the global crypto market capitalization stood at $1.02 trillion, a decrease of 3.12% over the last day. 

The stock market on Wednesday experienced a lot of ups and downs, owing to the Federal Reserve’s decision to halt its campaign on hiking rates, and also an announcement on their progress in controlling inflation.

Despite this, the central bank divulged that there could be two more rate hikes scheduled for later in the year. The S&P 500 index saw a slight increment of 0.08%, whereas the Nasdaq Composite index rose by 0.39%, mainly propelled by the rise in Nvidia and AMD.

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Analyst Notes: "The lows are getting swept. Heavily interested to see response at the $25K region," said Crypto analyst Michael Van de Poppe.

Pseudonymous analyst Rekt Capital said Bitcoin’s price continues its decline with yet another Weekly Close.  In the event of rejection at $26,600, Rekt Capital predicts that the $20,000 level could be on the horizon.

Analyst Jason Pizzino said Bitcoin is still in a lucrative bull market as long as it remains trading above the $20,000 mark. He believes that the bull market will persist until the crucial $20,000 level is breached.

"Overall, the macro is up… To the short-term, bear market, yes: lower highs, lower lows. That's short-term. But in the longer term, there is your bull market. We're still in it right now. That is going to pivot if we break $20,000," he adds.

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