Crypto markets dip on back of US Federal Reserve rate cut news
CRYPTOCURRENCY markets are mostly in the red this morning following yesterday’s Federal Reserve announcement of a 0.25% rate cut, but also cautionary outlook from Chair Jerome Powell about a slower pace of cuts in 2025.
Bitcoin, the market cap leader, briefly slipped below the psychological $100,000 mark before recovering to trade at $102,500 this morning, down just over 2% over 24 hours. Ethereum (ETH) is feeling a steeper decline, shedding around 4%.
Altcoins also struggled overnight, with heavy losses for Chainlink (LINK), Uniswap (UNI), and Apecoin (APE).
The Fear and Greed Index reflected this sentiment shift, retreating from 80 to 69, though it remains in 'Greed' territory.
With most major economic decisions for the year wrapped up, investors are wondering what comes next. Will the build-up to Trump’s inauguration in January shift sentiment? Or could the rumoured US Bitcoin strategic reserve reignite momentum?
In the Markets
Total crypto market cap
$3.53 trillion (-3.05%)
What Bitcoin did yesterday
Daily high $105,306 | Daily low $98,839
Bitcoin market capitalisation
$2.01 trillion (-2.2%)
Bitcoin 24-hour trading volume
$95.47 billion (+22%)
SP500
-2.95%
Fear and Greed Index
Greed
Source: Coinmarketcap
The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.
Bitcoin Relative Strength Index (RSI) (14)
44
Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price, while 30 or below indicates an oversold or undervalued condition.
Post Script…
Cautionary Notes
It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.
