Bitcoin Price Falls Below $62,500 Amid Market Correction

The price of Bitcoin has plummeted below $62,500 today, marking one of the most significant declines in the crypto market this year. The leading cryptocurrency is now trading at approximately $62,490, its lowest in a month, following a six-day streak of outflows from US Bitcoin ETFs and ongoing uncertainty surrounding monetary policies. Over the past week, Bitcoin’s value has dropped by 6%.

Ethereum, the second-largest cryptocurrency, has also experienced a downturn, losing over 6% in the last seven days. It had traded close to $4,000 earlier this month but has since fallen to $3,360, according to Coingecko data.

Federal Reserve’s Interest Rate Update

Earlier this month, the Federal Reserve decided to keep its benchmark interest rate unchanged, signaling only one rate cut for the year instead of the three initially anticipated. Although the Fed noted signs of inflation easing, it has not yet met the annual target of 2%. Higher interest rates typically reduce the appeal of speculative, risk-driven assets such as cryptocurrencies.

Altcoin Market Correction

The entire cryptocurrency market has decreased to $2.39 trillion, a 3.5% drop in the last 24 hours. Major altcoins have been affected, with BNB, Solana, and XRP down by 6.6%, 16%, and 4%, respectively, over the past week.

Meme Coins and Other Cryptos

Telegram’s TON, which had seen a strong performance recently, has fallen nearly 13% from its all-time high of $8.25 recorded earlier this month. Meme coins such as Dogecoin, Shiba Inu, and PEPE have also declined by 5%, 6%, and 11% in the past 24 hours, respectively. Dogwifhat has been hit the hardest, losing almost half of its gains from the previous week.