Bitcoin Falls Below $70,000 After FOMC Refuses to Raise Rates

Journalist

• Peter Schiff and David Solomon say there will be no rate cuts in the near future.
• The crypto market is experiencing a downturn. However, it has shown resilience and a focus on long-term strategies.

The Federal Reserve decided to keep interest rates unchanged due to concerns about the rising inflation rate in the US

Minutes of the recent Federal Open Market Committee (FOMC) meeting showed that policymakers were concerned about cutting interest rates.

The minutes noted that inflation remains above the FOMC’s 2% target despite some progress. Many consumer surveys showed growing concerns about future inflation.

FOMC decision faces criticism

In a post on X (formerly Twitter), Peter Schiff, CEO of Euro Pacific Capital and Chief Global Strategist, criticized the decision.

David Solomon, CEO of Goldman Sachs Group Inc., said at a Boston College conference that he predicts “zero” rate cuts. He said:

I still don’t see any data convincing enough to show that we are going to cut rates here.

Crypto Market: Negative Impact

Experts started to question the impact of the FOMC decision on the overall market conditions.

As the direct impact on leading cryptocurrencies shows, its impact was remarkable.

Bitcoin will be available on May 22. [BTC] The price of the car fell below $70,000. Ethereum [ETH]The red line, which was recently pushed up from $3,064 to $3,790, also appeared.

At the time of writing, the top coins on the daily charts were dominated by red bars.

Positive sentiments persist

Despite the bleeding crypto markets, @cryptosanthoshK is a crypto and DeFi analyst.

Ali Martinez, technical and on-chain analyst, expressed a similar opinion.

Glassnode’s Bitcoin liveliness metrics confirmed this by showing an increase in Coinday creation as opposed to destruction, suggesting a shift from short-term profit-taking to long-term investing.

Satoshi Flipper, a trader/investor, said he expects a significant increase in ETH price on the expectation of an ETF approval.

This week, $ETH will cause a massive ETF pump. The market cannot remain irrational forever.

Stock Market in Decline

The stock market has also seen a decline since May 22, despite the positive sentiment towards cryptocurrencies.

The Dow Jones Industrial Average fell 201.95, or 0.51%, to close at 39,671.04, its worst session of the month.

The S&P 500, which focuses only on technology stocks, fell 0.27% to reach 5,307.01, and the Nasdaq Composite recorded a loss of 0.18% to close at 16,801.54.