Bitcoin dropped to $79,750 as the US Federal Reserve maintained interest rates but showed signs of continued inflation concerns. This surprise hawkish sentiment led to profit-taking in digital assets. Investors are now shifting their focus toward upcoming US technology earnings to gauge wider market risk appetite.
Bitcoin has pulled back below the $80,000 mark, trading at approximately $79,750, a decline of 1.63% over the last 24 hours. The price drop follows the latest decision by the US Federal Reserve to keep interest rates unchanged in the 3.75% to 4.00% range.
While the rates remained steady, the market reaction was negative because the central bank’s stance surprised investors. Two policymakers explicitly pushed for a 25 basis point rate hike, signalling that some officials remain concerned about inflation. This suggests that the Federal Reserve may not lower interest rates as quickly as some traders had hoped. Higher interest rates typically increase borrowing costs, which can reduce the attractiveness of riskier investments like cryptocurrencies and technology stocks.
Institutional demand also presents a mixed picture. US spot Bitcoin exchange-traded funds recorded modest net inflows of $1.3 million. In comparison, Ethereum ETFs saw stronger interest, drawing $23.4 million, with significant activity in funds like Fidelity's FETH. This discrepancy suggests that institutional investors may be rebalancing their portfolios rather than exiting digital assets entirely.
The broader market is now bracing for volatility as investors wait for upcoming earnings reports from major US technology companies. These quarterly results are seen as a critical measure of whether the US economy remains strong despite high interest rates. If these technology giants report weak growth, it could signal that the broader market faces further pressure. For investors, the next few weeks will be important for tracking how global markets digest these macro signals and whether Bitcoin can stabilize near its current support levels or face further price pressure.