Bitcoin and other cryptocurrencies experienced a decline in prices on Friday amid a strengthening dollar and lingering risk-aversion following recent central-bank decisions. Over the past 24 hours, Bitcoin has fallen by 1% to reach $26,644. This drop came after the Federal Reserve’s decision to hold rates steady and the accompanying hawkish tone, which bolstered the dollar and caused Bitcoin to briefly dip below $26,500. Although Bitcoin has managed to recover some of its losses, it has failed to regain its pre-Fed decision level of $27,000.
According to Yuya Hasegawa, an analyst at crypto exchange Bitbank, Bitcoin successfully closed above the persistent resistance level of $26,500 on Thursday and is working to defend that level. If the expected decrease in volatility in wider financial markets materializes, Bitcoin could potentially experience a slight rebound in the coming days.
Unfortunately, there are currently few catalysts for a stronger rally in the cryptocurrency market as federal lawmakers remain at a standstill regarding comprehensive crypto legislation.
In addition to Bitcoin, other cryptocurrencies are also experiencing price declines. The second-largest cryptocurrency, Ether, has dropped by 1% to $1,595. Furthermore, smaller cryptos such as Cardano have fallen by 1.3%, while Solana has experienced a decrease of 0.2%. Even memecoins like Dogecoin have followed the same trend with a decline of 1.5%.
Overall, the future of cryptocurrency prices remains uncertain as external factors continue to impact the market.