Bitcoin, Ethereum, XRP, Dogecoin Slide Further Amid Fed's Hawkish Shift: Analyst Paints This Upside Target For BTC If It Holds $64,000 As Support

💡 Crypto markets slide as the Federal Reserve's hawkish shift raises concerns about further interest rate hikes.

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.

Crypto Markets in Turmoil

Bitcoin, Ethereum, and other cryptocurrencies saw significant losses on Wednesday as investors responded to the Fed's hawkish shift. $BTC fell to $22,500 before rebounding slightly, while $ETH dropped to $1,100. The price of $XRP fell by 10% as investors sold off riskier assets.

What's Behind the Selloff?

The Federal Reserve's hawkish shift is largely responsible for the sell-off in crypto markets. The central bank's decision to keep interest rates high for longer means that investors are likely to face higher borrowing costs and reduced liquidity. This, in turn, has led to a decline in investor sentiment and a rise in risk aversion.

Will Crypto Markets Recover?

It's difficult to predict with certainty whether crypto markets will recover in the near term. However, analysts point out that $BTC has maintained $64,000 as a key level of support and that a rebound could be imminent if the price holds above this level. One analyst has set an upside target of $40,000 if $BTC holds above $64,000 as support.

What It Means for Investors