The month of August starts with Bitcoin (BTC) intensifying its falls, bringing its price down to around $64,000 this Thursday (1st). According to CoinGecko data, BTC has accumulated losses of 2.2% on the day, trading at $64,500. In Brazilian reais, BTC is down 2%, to R$ 367,592, according to the Bitcoin Price Index (IPB).
Most cryptocurrencies in the market are following Bitcoin’s drop, with some experiencing even further depreciation this morning. Ethereum (ETH), Solana (SOL), and XRP are among those that are down by 4%, 8%, and 6.4%, respectively.
The Federal Reserve decided yesterday (31) to keep interest rates unchanged — a move widely expected by investors. After the Fed’s decision, the price of Bitcoin remained stable, with the falls intensifying overnight, when the cryptocurrency hit a daily low of $63,500.
Federal Reserve Chairman Jerome Powell did not reveal much about a possible future rate cut, stating that, although “inflation has decreased substantially,” if in September “inflation proves to be persistent,” a cut would be less likely. “‘Certainty’ is not a word we have in our business,” he said.
Nevertheless, investors are confident that a rate cut will occur in September. A statement from the Fed yesterday even stated that the U.S. economy was “expanding at a solid pace.”
“Although they did not cut rates today, Fed officials seem eager to get started,” said Zach Pandl, head of research at Grayscale, to Decrypt. “Powell laid the groundwork for a cut in September, which is likely to be the first of several moves.”
“Lower interest rates should tend to weigh on the value of the dollar and, therefore, support the price of Bitcoin,” he continued, stating that he believes “current macroeconomic trends are increasingly favorable for Bitcoin and the cryptocurrency asset class.”
In the expert’s view, the combination of Fed rate cuts, bipartisan focus on crypto policy issues, and the prospect of a second Donald Trump administration could be “very positive” for Bitcoin.
In addition to U.S. interest rates, investors are also keeping an eye on geopolitical tensions, which have the potential to impact markets, including the cryptocurrency sector.
The falls intensified last night after The New York Times reported that Iranian leaders ordered retaliation against Israel for the death of Hamas leader Ismail Haniyeh, increasing the risks of a broader conflict in the region.
The post Crypto Morning: Bitcoin falls 2% to $64,000 after Fed decision and geopolitical tensions first appeared on Portal do Bitcoin.
