Bitcoin (BTC) Price Falls to $42,000 as Federal Reserve Keeps Interest Rates at 23-Year High (Market Watch)

Bitcoin rose to almost $44,000 yesterday, but faced severe rejection and was pushed back to $42,000 as the US Federal Reserve failed to make any changes to its monetary policy.

Solana is among the worst performers over the same period, down 5% and trading at $95.

BTC falls to $42,000

It was exactly a week ago when BTC bottomed at $38,500 as the ETF approval hype died down. Since then, bulls have mostly remained in control, driving multiple price increases.

The peak came earlier this fiscal week when Bitcoin rose to $43,750. It initially failed there, but went on the offensive again yesterday. However, the bears managed to intercept the move at the same price and did not allow a challenge to the $44,000 level.

This came as Federal Reserve Chairman Jerome Powell announced that there will be no major changes to the central bank's monetary strategy when it comes to interest rates. This means they remain at a decade-long high of over 5%.

BTC fell to $42,000 but managed to defend this level and is now trading just inches above it. Its market capitalization is $825 billion and its dominance over altcoins is just over 51%.

BTCUSD. Source: TradingView

SOL goes south

Most alternative coins are also in the red today, with ETH down 2.5% and trading well below $2,300. BNB has also fallen below $300 after a slight daily decline. Ripple, Cardano, Avalanche, Polkadot and Chainlink also recorded daily losses.

Solana and Polygon have fallen the most among the larger altcoins. Both assets are down over 5%. As a result, SOL is struggling at $95 while MATIC is below $0.8.

Most other low- and mid-cap alternatives are seeing similar losses. As a result, the total crypto market capitalization has fallen by another $30 billion, falling to $1.620 trillion at CMC.

Overview of the cryptocurrency market. Source: Quantify Crypto
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Cryptocurrency charts from TradingView.

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