Bitcoin dropped to $20,000 on Thursday after the U.S. Federal Reserve moved again to raise interest rates. As it continued its hawkish policies, the Fed raised rates by 75 basis points. Ethereum, which initially surged on the news, was also lower in today’s session.
Bitcoin
Bitcoin (BTC) dropped in Thursday’s session, as bearish sentiment rose, following the aftermath of yesterday’s Fed meeting.
Following the Federal Reserve’s decision to maintain current hawkish policy by raising rates, BTC/USD surged to a peak of $20,742.81.
However, markets have changed their minds and now believe that the Fed will not raise rates again. They may even pivot.
BTC/USD dropped to $20.087.13 early in the day as bears tried taking the token below $22,000
The 14-day relative strength indicator (RSI) was at 51.84 as of this writing. It is still below the 53.00 floor.
If this momentum continues through the weekend many anticipate BTC will trade close to its $19,000.600 support level for the long term.
Ethereum
In addition to bitcoin, ethereum (ETH) was also volatile following the Fed’s decision to hike rates by 75 basis points.
Initially, the ETH/USD rose to a peak of $1613.41 in news. But, on Thursday, it dropped to an intraday low, $1,507.24.
The move sees the token now fall for a fifth straight session, following last week’s gains, which saw prices hit a 6-week high.
The chart clearly shows how the decline of the RSI brought it to a level of 58.00. Bears have attempted to move below this mark.
As of writing, bulls have so far rejected this, with the world’s second largest token somewhat rebounding.
ETH currently trades at $1.531.53, while the 10-day (red-colored) moving average is facing higher. This could indicate that resilient bulls await the moment to escalate market pressure.
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