Bitcoin slid to its lowest level in over two months to kick off May, as the Federal Reserve held interest rates steady.
The cryptocurrency at one point dropped 5% to $56,526.00, its lowest level since Feb. 27, according to CoinMetrics. It was last lower by about 4% at $56,954.13.
Investors have been focused on the latest interest rate decision from the Federal Reserve, which concluded its two-day policy meeting on Wednesday afternoon. The central bank kept its benchmark short-term borrowing rate unchanged, as expected. The federal funds rate has been in a targeted range between 5.25% and 5.50% since July 2023.
“The broader macro backdrop has deteriorated for assets like crypto that thrive on liquidity,” Geoff Kendrick, Standard Chartered’s head of digital asset research, said in a note Wednesday. “Broader liquidity measures in the U.S. … have deteriorated rapidly since mid-April.”
Source: CNBC
