Bitcoin Drops On Interest Rate Jitters

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Bitcoin Drops On Interest Rate Jitters

Bitcoin Drops To $62000 On Interest Rate Jitters

The sentiment in the cryptocurrency market has shifted from positive to sour in the face of higher interest rates that are not going anywhere soon.

At the same time, the DTCC has also changed the collateral rules, which was yet another blowback for cryptocurrencies like BTC and ETH.

Bitcoin (Btc) Down By 2.5%

In the last 24 hours, a 2.5% decline was seen in the BTC, which has sent it towards the $62314.6 level. It appears that the BTC is now trading in the lower end of the trading range ($60K - $70K) & has a bearish bias for now.

Major news that has shaken the financial markets was from the DTCC, which announced that it will not be providing collateral to funds and ETFs with exposure to cryptocurrencies.

The decision from the DTCC will go into effect starting from 30th April, but it has already started to dampen the sentiment regarding cryptocurrencies.

Bitcoin & other coins, which were already struggling, didn't react positively to the DTCC decision and thus refreshed new looks. At the same time, there is the fear of higher interest rates for a long period of time, which is now becoming a reality.

Now, the crypto market will be focusing on the upcoming Fed meeting to get any cues about the interest rate policy. According to the market forecast, the interest rates will not be changed at the upcoming meeting. A lot of experts are now of the view that the Fed will cut rates in the 4th quarter or in September 2024.

With the bearish bias in Bitcoin, other altcoins also followed suit, with ETH showing a loss of 3.4%. At the same time, Solana and XRP have lost 4.5% and 3%, respectively.

The upside seen in the US tech stocks also provided little support to the cryptocurrencies, but it was still not enough to restart the bull run.

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