The Federal Reserve’s decision to cut interest rates by 25 basis points has unexpectedly impacted the cryptocurrency market. Bitcoin (BTC) 
$100,709 fell below the psychological threshold of $100,000, resulting in sharp sell-offs across the market. Major altcoins such as Ethereum (ETH) 
$3,655 and XRP also experienced significant losses due to this decline.
Bitcoin and Altcoins Lose Value
Following the rate cut, Bitcoin lost 4% and traded at $100,880. The intraday low and high were recorded at $98,874 and $105,389, respectively. The market capitalization dropped to $2 trillion, while trading volume reached around $100 billion. The market dominance was recorded at 57.12%.
Ethereum was also affected, decreasing by 6% to $3,652. Its 24-hour low and high were $3,543 and $3,902, respectively. Ethereum’s total market capitalization was estimated at $440 billion, with a daily trading volume of $52 billion. XRP suffered a significant decline of 10%, disappointing its holders.
Trading Volume Increases While Market Capitalization Declines
The overall market capitalization fell by 5% to $3.44 trillion. However, trading volume increased by 40%, reaching $251 billion. This situation indicates that there is still a high level of trading activity in the market. The Fear and Greed Index remained stable at 69, suggesting that investors’ risk appetite remains high.
According to a report by SoSo Value, there was an outflow of $84 million from Bitcoin ETFs on Wednesday. Grayscale led with an outflow of $35 million, followed by Invesco with $25 million. Data from BlackRock has yet to be disclosed.
The cryptocurrency market is experiencing volatility following the Fed’s interest rate cut. Bitcoin’s drop below $100,000, the decline in altcoins, and the rising trading volume are noteworthy. Experts predict that future market movements will depend on Fed policies and project developments.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
