Top crypto assets fall in price amid Fed statements

The value of the leading cryptocurrencies, including Bitcoin BTC $99,904.78 Bitcoin -4.29% Market capitalization $1.98 trillion VOL. 24 hours $5.58 billion , Ethereum ETH $3,585.96 Bridged Ether (StarkGate) -7.14% Market capitalization $0.32 billion VOL. 24 hours $3.23 billion and Dogecoin DOGE $0.11 Department Of Government Efficiency -9.99% Market capitalization $0.11 billion VOL. 24 hours $1.17 billion , fell after the US Federal Reserve announced that it has no plans to buy Bitcoin. According to Benzinga, the market leader dropped 4.94% to trade at $ 100,644, while Ethereum fell 5.81% to $ 3,648. Dogecoin lost 8.26%, dropping to $ 0.36.

The key reason for the fall was a press conference by Fed Chairman Jerome Powell, where he confirmed that the central bank does not intend to change the laws for the purchase of BTC. The cryptocurrency market reacted by increasingly negative sentiment: in 24 hours, the volume of liquidations on the futures market reached $ 675 million, most of which were long positions.

Nevertheless, Bitcoin remained above the psychological level of $ 100,000, and open interest in the asset decreased by only 1.1%. According to analysts, many traders expect a possible recovery to $ 105,900, which could lead to the liquidation of short positions worth more than $ 1 billion.

Cryptocurrency expert Ali Martinez noted that the current drop is caused not only by the Fed’s 0.25% rate cut, but also by a change in sentiment about continued inflation. He urged investors to avoid panic and keep an eye on the market to take advantage of opportunities once the situation stabilizes.

The Rekt Capital analyst also emphasized the importance of maintaining the $ 101,000 level for further recovery of the Bitcoin price. In case of failure, this level may turn into resistance, which will increase the risks of further decline.