Bitcoin reached a new all-time high of $28,865 in the year before this afternoon’s FOMC meeting. It then lost both $28,000 and $27,000 of psychological support, falling 7.2% within two hours.
Over $224 million worth of crypto market assets have been liquidated in the last 24hrs, and $170 million in just the past four hours.
Bitcoin is believed to have $26,800 at press time. This has created a spread of $2,065, or 8.8%, for the day.
The Federal Reserve raised interest rates by 25bps during the FOMC meeting with Chairman Jerome Powell stating, “we no longer expect that ongoing rate increases will be appropriate.” The news indicates that further rate hikes are unlikely throughout 2023.
In the short term, the crypto community seems to be bearish following the news. The fall indicates that Bitcoin is no longer able to support long-term support and has become resistance at the $28,700 mark. The chart below shows that Bitcoin was supported at $28,700 multiple times during the bull run, with heavy buying by investors.