Bitcoin (BTC) price slides to 2-month low after Fed meeting minutes
What caused Bitcoin's recent price drop below $57,000?
Bitcoin's recent price drop below $57,000 was mainly caused by the U.S. Federal Reserve's reluctance to cut interest rates, as indicated in the minutes from its June meeting. Higher interest rates are generally unfavorable for cryptocurrencies, as they dampen investor risk appetite.
How did the Federal Reserve's June meeting impact Bitcoin prices?
The Federal Reserve's June meeting minutes revealed officials' reluctance to lower interest rates until additional data shows inflation moving sustainably toward the central bank's 2% target1. This caused Bitcoin's price to slump to around $57,000, hitting a two-month low, as higher interest rates are typically less favorable for Bitcoin and other cryptocurrencies due to dampened investor risk appetite3.
What was Bitcoin's all-time high price reached in March?
Bitcoin's all-time high price was reached in March 2024, when it hit $73,084. This milestone came after the approval of the first U.S. spot bitcoin ETF, which helped boost the cryptocurrency's legitimacy and attract more institutional investors.