Crypto market sheds $100 billion as bitcoin price drops 5% amid Fed caution

The cryptocurrency market experienced a significant downturn, shedding more than $100 billion in value over 24 hours, with Bitcoin dropping about 5% to trade below $71,000. Major altcoins like Ethereum, Solana, and Dogecoin saw similar or steeper declines. This retreat occurred ahead of the Federal Reserve's policy decision, where the federal funds rate was held steady between 3.5% and 3.75%, a move largely anticipated by markets. However, Fed Chair Jerome Powell expressed caution, noting that inflation remains "somewhat elevated" and the economic outlook is uncertain, citing potential inflationary pressure from rising energy prices linked to Middle East tensions. This macro caution caused broader risk assets to weaken, with the S&P 500 sliding and commodities like gold and silver falling, as analysts noted crypto's momentum was fragile and driven more by macro factors than crypto-native catalysts.

(Source：The Block)