Crypto
Bitcoin Price Drops To $64K After Fed Holds Rates Steady
Bitcoin price fell to $64K ahead of the FOMC meeting as $440 million in crypto liquidations and rising Fed rate hike expectations rattled investors.
1d ago 4,280
BLOCKINSIDERLoadingBitcoin price fell to $64K ahead of the FOMC meeting as $440 million in crypto liquidations and rising Fed rate hike expectations rattled investors.
Bitcoin remained volatile after the Federal Reserve left interest rates unchanged at the 3.5% to 3.75% band, with the cryptocurrency briefly slipping to $64,000 as traders reacted to the central bank's latest policy decision.
Bitcoin briefly dropped from around $65,600 to nearly $64,012 before recovering above $64,541, while Ethereum, XRP, and other major cryptocurrencies also posted steep losses. The sell-off wasn't driven by a single event.
According to CoinGlass liquidation data, more than $440 million worth of leveraged crypto positions were erased over the past 24 hours, with long traders accounting for $320 million of losses.
As prices declined, forced liquidations accelerated the move lower, pushing Bitcoin below key support levels.
Adding to the pressure, the crypto market has also faced weakening institutional demand. U.S. spot Bitcoin ETFs recorded their fourth consecutive day of net outflows, totaling more than $527 million this week, with BlackRock's IBIT leading the withdrawals.
The sustained outflows suggest institutional demand weakened ahead of the Fed's policy decision.
Meanwhile, overall financial markets also turned defensive, with the KOSPI index plunging 10% while Nvidia shares fell around 5%.
As widely expected, the Federal Reserve left its benchmark interest rate unchanged. Markets are now focused on policymakers' guidance and the timing of potential future rate cuts or hikes.
Before the rate announcement, prediction market Polymarket had showed an estimated a 25% chance of a rate increase, up from about 14% just one week ago after attracting more than $117 million in trading volume.
Although the Fed left interest rates unchanged, investors continue to assess the central bank's policy outlook, with expectations for future rate moves likely to remain a key driver of crypto market sentiment.
Notably, before the meeting, several market participants, including Citadel Securities, had warned that investors may be underestimating the possibility of another rate hike.
Bitcoin’s current price structure suggests that the long-term downtrend may be losing strength, but CryptoQuant’s analysis suggests selling pressure is slowly fading.
Since its all-time high, each major sell-off has become shorter, while recovery moves have grown stronger. Bitcoin’s recent decline also barely broke below its February low, and the price has since stabilized around $60,000. This suggests sellers are losing control.
Looking at the analyst’s Elliott Wave analysis points to a possible ABC correction, similar to the 2022 bear market. This could complete Wave (2) and set the stage for a larger bullish cycle. However, Bitcoin may still face one final sell-off toward the 61.8% Fibonacci level near $51,336.
The $50,000 area is particularly important because several technical factors converge there. The level is close to the 61.8% Fibonacci retracement, while historical price structures also support it.
The analyst highlights the March 2022 structural high, which later acted as a bottom during the 2024 summer correction. In addition, Bitcoin’s Realized Price and 200-week SMA are also positioned around this region.
This makes the $50,000-$51,300 zone a potentially strong area for buyers if Bitcoin falls further.
On the upside, reclaiming the $65,500-$66,000 area would improve short-term sentiment and indicate that investors are digesting the Federal Reserve's latest policy outlook.
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