Hawkish Fed Shift Sends Cryptocurrencies Plummeting Amid Rebound in Stocks

Bitcoin and other major cryptocurrencies fell on Thursday after the Federal Reserve's hawkish pivot in policy. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all rebounded as stocks recovered from Wednesday's sell-off.

The Federal Reserve held the federal funds rate steady at 3.50%-3.75%, with Chair Kevin Warsh striking a notably hawkish tone. This caused investors to reassess their bets on Bitcoin and other cryptocurrencies, leading to significant price drops across the market.

Bitcoin fell to around $62,000, while Ethereum tumbled to an intraday low of $1,670. XRP and Dogecoin also traded in the red. The global cryptocurrency market capitalization stood at $2.17 trillion, following a decline of 2.31% over the last 24 hours.

CryptoQuant noted that large and small whale orders remained stable within the correction zone. This reflects the accumulation activity of large capital flows beginning to emerge, reducing the current selling pressure on BTC. Analyst Ali Martinez reiterated the significance of $64,000 as a key support for Bitcoin within a descending channel on a 1-hour chart.