The crypto market took a hit after the Federal Reserve's (Fed) first meeting under new chair Kevin Warsh, with Bitcoin (BTC) falling around 4% to $64K. The decline was triggered by the Fed's decision to keep interest rates at 3.5%-3.75%, citing sticky inflation and supply shocks.
The 'dot plot' showed that half of the Fed's board of governors favored at least one interest rate hike this year, which typically dents risk sentiment. This led to a pullback in the crypto market, with BTC falling below its recent support levels.
Despite the sell-off, some analysts expect BTC to bottom out around $62K-$60K before making a potential bounce towards $100K in Q3. Matt Mena, senior crypto research strategist at 21Shares, believes that BTC is 'structurally well-positioned' to reach the $100K level again.