Bitcoin reclaimed $98000 after Fed kept interest rates unchanged

In the latest meeting of the central bank committee members, it was finalized that the interest rates would remain unchanged. This news brought a temporary drop in Bitcoin price, but shortly, the cryptocurrency reclaimed $98,000. This stability came after three months when the Fed decided to keep the interest rate the same. 

Immediate Market Response 

According to CoinMarketCap, the cryptocurrency’s 7-day gain reached 2.04% after the Bitcoin price fluctuated between $94,494.88 and $97,625.81. Bitcoin’s dominance in the broader crypto market also increased, up 0.44 percentage points to 65.45%, highlighting a growing preference for Bitcoin over altcoins in the current ongoing cycle.

Fed Interest Rates Impact at the Macro Level 

Crypto markets also went up 0.95%, reaching a total market capitalization of $2.98 trillion. Meanwhile, the S&P 500, Nasdaq, and Dow Jones Industrial Average all rose 0.43%, 0.27%, and 0.70%, respectively. 

Bitcoin Got a Bearish Response 

Bitcoin’s futures open interest rose by 1.93% to $64.37 billion in the derivatives market.  It reflects the heightened participation of leveraged traders. CoinGlass data shows total liquidations over the last 24 hours reached a modest standard of $273,240. Short traders accounted for the majority at $225,840, compared to just $47,400 long liquidations. This response indicates that bearish traders likely misread the crypto market.