Bitcoin slipped back toward $80,000 following the US Federal Reserve's decision to leave interest rates unchanged, sparking widespread volatility that dragged major altcoins NEAR and BCH down by 8%.
Post-FOMC Volatility Hits Bitcoin
Following a rejection at $85,000 last Wednesday, Bitcoin (BTC) entered a brief correction to $83,000 and dropped to $81,000 by Thursday. Bearish momentum pushed the price to $79,100 on Saturday, marking a five-week low. Despite rebounding to $81,700 on Wednesday ahead of the second-to-last Federal Open Market Committee (FOMC) meeting of the year, gains proved short-lived.
The Federal Reserve maintained interest rates following its September hike. However, Fed Chair Warsh did not rule out another rate increase in December. BTC fluctuated rapidly surrounding the announcement, dropping to $80,500 before rising to $81,800 and ultimately slumping to $79,600. Bitcoin currently trades near $80,000, with its market capitalization standing at $1.61 trillion on CoinMarketCap and market dominance at 60%, reflecting ongoing broader market turbulence seen after recent macro events like the Fed rate pause and market crash.
Altcoins Fall as BTW Bucks Trend
The total cryptocurrency market capitalization decreased 1.5% over the past 24 hours to $2.680 trillion. Ethereum (ETH) fell 2.14% to $2,320, while XRP dropped 3% to slide below $1.30, remaining close to key technical levels such as its $1.25 Fibonacci support.
Other major tokens also recorded notable declines: Solana (SOL) fell back to $100, and Zcash (ZEC) dropped over 5% to $1,250. NEAR Protocol (NEAR) and Bitcoin Cash (BCH) registered the largest losses among major digital assets, declining by roughly 8% each. Additionally, CC, ENA, and MNT fell by up to 7%, while HYPE, DOGE, LINK, and ADA remained in negative territory. Contrasting the general decline, BTW surged 8% to trade near $1.90.
Key Takeaways
- Bitcoin struggles around $80,000 after dipping to a post-FOMC low of $79,600.
- Federal Reserve holds rates steady, but Fed Chair Warsh leaves a December rate hike on the table.
- NEAR and BCH lead major altcoin losses with 8% drops, while BTW gains 8%.
- Total crypto market cap declines 1.5% to $2.680 trillion.
Why It Matters
The Federal Reserve's lingering hawkish stance signals persistent macroeconomic headwinds that continue to constrain broader risk assets. With Bitcoin struggling to defend the key $80,000 psychological zone, market participant sentiment remains cautious and reactive to central bank updates. Investors will monitor incoming economic data ahead of the December Fed meeting to determine whether the crypto market can establish a definitive support floor.
