Bitcoin Drops below $25,000 after Fed Meeting

Cryptocurrency prices tumbled after the Federal Reserve’s June meeting, with Bitcoin sliding below $25,000 for the first time since March.

On Thursday, Bitcoin was weaker by around 4% at $24,866.92, while Ether slid more than 5% to $1,632.47. Altcoins also fell. Solana was down 4%, Polygon tripped by 8% and Cardano lost 6%. Intense sell pressure also weighed on Tether, which lost its peg to the U.S. dollar, falling to 99 cents in its biggest drop since November.

The slide began late Wednesday after the Federal Reserve decided to leave interest rates unchanged for now but said two more could happen later this year. Stocks were under pressure as news broke, but cryptocurrency prices remained unchanged until after the close.

Analysts believe crypto’s fall has more to do with thinner liquidity and weak sentiment. Trading volumes of all coins are low at the moment, as traders keep their money off the table in the midst of a regulatory backlash. This is most relevant when it comes to altcoins, which are under intense scrutiny from regulators.

Bitcoin was flat this week before dropping when the stock market closed Wednesday.

Price action has been weak this week while sentiment has been negative after the Securities and Exchange Commission sued Coinbase and Binance.

The ongoing regulatory confusion is keeping capital on ice. It is expected to take a long run of good news to get traders feeling positive about a recovery. Bitcoin prices are expected to hover between $25,000 and $27,000 until there is regulatory clarity.