Bitcoin’s Price Drops Below $64k as Entire Market Turns Red, XRP Loses Gains

Bitcoin’s price fell 1.4% to $63,721 on Thursday, influenced by the US Federal Reserve’s decision to maintain interest rates and escalating tensions in the Middle East. This dip marks the first time Bitcoin has dropped below $65,000 in a week. The Fed’s decision to keep interest rates steady at around 5.3%, a two-decade high, was expected. Fed Chair Jerome Powell mentioned the possibility of a rate cut at the next meeting on September 18.

Bitcoin’s Price Swings as Fed Signals Potential Rate Cuts

The Fed’s statement on Wednesday has bolstered expectations for a future rate cut, with officials noting cooling inflation and a growing focus on labor market health. This shift in language from previous statements has heightened market anticipation. Bitcoin and other cryptocurrencies often react to Fed decisions, with traders adjusting their positions in advance.

Whale Accumulation Spurs XRP Price Increase Before 5% Drop

XRP dropped nearly 5.4% to $0.606, wiping out gains from July 31. The previous price increase was linked to accumulation by major holders, or “whales,” suggesting potential for future growth. However, this momentum was short-lived. On-chain data from Santiment indicated a rise in XRP holdings among addresses with at least 10,000 tokens.

Meanwhile, other cryptocurrencies also saw declines: Ether fell 3.3% to $3,160, and Solana’s SOL decreased by 2.27%.