Bitcoin Price Drops Below $19,000, Ether Falls, XRP Drops Due to Delayed Claim
Bitcoin fell below $19,000 Thursday morning in Asian trading after moving briefly above that resistance overnight as investors digested the US Federal Reserve’s decision to raise interest rates by 75 basis points, or in line with expectations. All of the top 10 cryptocurrencies by market capitalization have lost ground, with Ether being the biggest loser.
See related article: Bitcoin recovers from sharp decline after Federal Reserve raises interest rates by 75 basis points
- Bitcoin is down 1.8% in the past 24 hours to trade at $18,574 at 8am in Hong Kong. It’s down about 9% over the past seven days. Ether fell 5.4% to $1,252, recording a 23% drop for the week, according to CoinMarketCap. Solana stock fell 1.9% to $30.60, while Dogecoin was down 1.8% to $0.057.
- Bitcoin traded at less than $19,000 for most of Wednesday, but rose to $19,744 after the Federal Reserve announced its interest rate at 5 am in Hong Kong and then fell sharply. US stock markets also fluctuated after the rate was released, but then fell back in the final hour of trading as the Federal Reserve signaled a more aggressive monetary tightening in 2023.
- XRP fell 4.5% to $0.39 after the token issuer Ripple Labs disputed a statement from the US Securities and Exchange Commission, saying it may require additional time for the parties involved to file more documents in its lawsuit against Ripple. XRP has gained 14.7% over the past seven days as both parties have been seeking an expedited ruling that would put an end to a lawsuit that began in December 2020 with the SEC alleging that Ripple sold $1.38 billion in unregistered securities.
- US stocks fell on Wednesday, with the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all ending the day down 1.7%.
- The Federal Reserve announced the interest rate changes at the Federal Open Market Committee meeting scheduled for Wednesday. Federal Reserve Chairman Jerome Powell has consistently said that the central bank will raise interest rates until inflation reaches the 2% target. The latest CPI data showed that the inflation rate reached 8.3% in August.
- “We were expecting that we would start to see inflation coming down, largely because of the supply-side recovery,” Powell said at the FOMC press conference. “We haven’t. We have seen some recovery on the supply side but inflation hasn’t really gone down.”
See related article: Ripple objects to SEC relief proposal in XRP lawsuit