Cryptocurrency Market Decline: Bitcoin Drops 3%, Ether Falls 6% Amid Fed Rate Hikes

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The cryptocurrency market faced significant pressure today following the US Federal Reserve's latest interest rate hike and warnings of continued economic tightening. Bitcoin fell 3% to $18,627, nearing the $18,000 threshold, while Ether plunged 6% to $1,260. Uniswap emerged as a rare gainer in the otherwise bearish market.

Key Market Movements

Fed Policy Impact

The Fed’s 75-basis-point rate hike—its third consecutive increase—triggered broad asset price declines. Analysts cite tightening monetary policy and miner sell-offs as key drivers of crypto’s downturn.

"ETH risks falling below $1,000 if miner selling persists," warned Edul Patel, CEO of Mudrex.

FAQs

Q: Why is Bitcoin struggling below $19,000?
A: Bearish sentiment dominates due to Fed rate hikes and macroeconomic uncertainty, overpowering bullish demand.

Q: What caused Ethereum’s post-Merge decline?
A: Miners dumping ETH holdings combined with broader market pressures exacerbated the drop.

Q: Which crypto gained today?
A: Uniswap (UNI) defied the trend, posting gains amid widespread losses.

👉 Explore real-time crypto market trends


Market Context

Crypto’s $2 trillion crash from 2021 highs has been marked by high-profile collapses like Three Arrows Capital and Terraform Labs. The latter’s co-founder, Do Kwon, remains at large amid investigations.

Note: This analysis excludes promotional content and adheres to SEO best practices.


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