Bitcoin, Ethereum Prices Keep Falling Post-Fed Decision

💡 Bitcoin and Ethereum prices plummet following the Federal Reserve's hawkish decision, sparking investor concerns.

The Federal Reserve delivered a hawkish surprise on Wednesday, signaling that interest rate cuts remain further away than markets had hoped. Fed Chair Jerome Powell told reporters that the central bank needs "greater confidence" that inflation is sustainably declining before it will consider easing policy.

The 10-year Treasury yield surged to 4.8% in the aftermath, its highest level since October 2023. $TLT fell sharply as bond traders repriced the timing of the first cut from March to June.

Bitcoin Price Plunges

Bitcoin prices have been particularly hard hit, falling 5.6% to $26,350, its lowest level since 2023. The decline has sparked concerns that the cryptocurrency's price may be entering a bear market. Market capitalization has plummeted by 10% over the past week, with $BTC losing its footing above $30,000.

Ethereum Price Follows Suit

Ethereum prices have also taken a hit, falling 4.2% to $1,850. The decline has raised concerns that the cryptocurrency's price may be entering a bear market. Gas fees have skyrocketed as traders rush to sell their Ethereum holdings.

What It Means for Investors