Bitcoin Plunges 3% As Fed Keeps Rates Unchanged And Powell Hints At September Rate Cut

The Bitcoin price plunged 3% over the past 24 hours to lose the key $65K support as the US Fed kept rates unchanged and Chair Jerome Powell hinted at a September rate cut.

Following the pullback by the BTC price, the leading crypto is trading at $64,254.51 as of 3:55 a.m. EST. 

Crypto Market Cap Slips As Investors Adjust Their Portfolios After Fed Decision

The Federal Open Market Committee (FOMC) decided to leave interest rates at 5.25% to 5.5%. But risks that the labor market weakens further is prompting the Fed to open the door to a possible rate cut next month.

Jerome Powell (Fed Chair):
– “A reduction in our policy rate could be on the table as soon as the next meeting in September.”#FederalReserve #FOMC #Video pic.twitter.com/ICCnljanQP

— Kevin Svenson (@KevinSvenson_) July 31, 2024

With the next potential interest rate cut delayed to September, investors are re-adjusting their portfolios to limit exposure to risky asset classes such as crypto.

Over the past 24 hours, the crypto market reacted as expected and suffered a more than 3% drop in valuation, according to CoinMarketCap data. Rising tensions in the Middle East added to investors adopting a more risk-off stance.

The Crypto Fear and Greed Index, a key tool used to gauge investor sentiment in the crypto market, also dropped 9 points to a neutral score of 52 in the past 24 hours. Just a week ago, the index signaled greed in the market with a score of 68.

Big Name Meme Coins Take A Hit After Bitcoin Plummets

Meme coins emerged as the biggest losers in the last trading session with the sector’s market capitalization plunging 4.6% to $49.2 billion, according to CoinGecko.

Dog-themed token Dogwifhat (WIF) suffered the most after shedding 12% of its value in the past 24 hours. It’s plummeted 20% in the past week.

Biggest 24-hour losers (Source: CoinMarketCap)

Mog Coin (MOG) was the second biggest 24-hour loser after its price fell more than 11%. Book of Meme (BOME) and Solana meme coin Bonk (BONK) also made their way onto the biggest 24-hour losers list.

With meme coin titans plummeting, meme coin fans may turn to presale tokens that are not yet available on the open market to wait out the bearish storm.

Among analyst favorites are projects like Pepe Unchained (PEPU) and PlayDoge (PLAY). PEPU has blasted past $6.7 million in funds raised while PLAY is within a whisker of hitting $6 million.

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