Bitcoin Price Plummets Below $70K After Fed Holds Interest Rates Steady

Bitcoin's price took a hit yesterday after the Federal Reserve announced that it would keep interest rates steady at 3.50%-3.75%. This decision, combined with escalating Middle East tensions and inflation risks, sent Bitcoin's value tumbling by over 4% to an intraday low of $69,537.

The market reaction was not limited to cryptocurrency, as stocks also took a plunge. The Nikkei, gold, and the S&P 500 fell nearly 3.2%, 3%, and 1%, respectively, in response to the Federal Reserve's decision.

Two large Bitcoin holders, often referred to as 'whales,' sold a combined total of over $117 million worth of BTC on Wednesday, which added to the selling pressure. The sudden drop from $75,000 to below $70,000 triggered over $511 million in liquidations across the market.

Despite this downturn, experts believe that Bitcoin will likely stay within a contained range. Rachel Lin, CEO of decentralized crypto exchange SynFutures, notes that the $70,000-$72,000 zone is emerging as an important near-term support, with ETF inflows helping to absorb supply around these levels.