Bitcoin’s price fell below $61,000 despite the Federal Reserve’s dovish stance in the Federal Open Market Committee’s (FOMC) recent minutes. The FOMC revealed that a majority of participants supported a 50 basis point reduction in US interest rates, while a minority preferred a smaller cut of 25 basis points. The larger cut backers argued that it aligned better with recent indicators of inflation and labor market conditions, emphasizing the importance of sustaining economic and labor market strength.
Other major altcoins like Ethereum, Solana, and BNB Coin also experienced price dips following Bitcoin’s downward trend. Despite the lack of bullish momentum in the crypto market, futures open interest spiked significantly after the FOMC meeting. In contrast, the US equities market reacted positively to the minutes, with the S&P 500 and Nasdaq Index showing gains.
Andrew Kang, the co-founder of Mechanism Capital, explained the disconnect between crypto and equities performance. He highlighted that equities are more closely related to US interest rate policies, leading to a jump in equities prices after the minutes were released while crypto prices continued to lag behind.
Traders are currently in a state of uncertainty and may be waiting for US economic data expected on October 10 before making more decisive moves in the market. Despite Bitcoin’s price dip, it remains the top-ranked cryptocurrency by market cap with a market capitalization of $1.21 trillion and a 24-hour trading volume of $25.74 billion.
Overall, the total crypto market is valued at $2.13 trillion with a 24-hour volume of $64.06 billion, and Bitcoin dominance stands at 56.56%. The market continues to react to various factors, including interest rate policies, economic data, and investor sentiment. Investors and traders will be closely monitoring these developments to navigate the ever-changing crypto landscape.