The prices of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) are sliding lower after the U.S. Federal Reserve decided to hold interest rates at current levels.
Prices for major cryptocurrencies, which also include Solana (SOL) and XRP (XRP), are down 2% to 3% after the U.S. central bank held its Federal Funds rate in a range of 3.50% to 3.75%.
Lower interest rates are generally seen as bullish for risk assets such as stocks and cryptocurrencies.
While financial markets had expected the Fed to keep rates at current levels, the decision nevertheless broke a string of three consecutive rate cuts, sending crypto prices lower.
Hawkish comments from Fed Chair Jerome Powell are also weighing on risk assets such as Bitcoin and Ethereum.
At a news conference, Powell said that the U.S. economy remains on a “firm footing” despite pockets of weakness.
The Fed chair added that the current level of interest rates is not restrictive or holding back economic growth.
Futures markets are pricing in two interest rate cuts from the U.S. central bank this year, with the first reduction not expected until June.
Many analysts say that they expect the price of Bitcoin and other cryptocurrencies to continue falling in the near-term due to a lack of catalysts for digital assets.
Bitcoin is currently trading at $88,000 U.S., having declined 14% in the last 12 months.
