Bitcoin fell on Thursday, cutting short a brief rebound as the Fed's October meeting reinforced bets on more interest rate hikes. Mixed tech earnings added pressure, and altcoins weakened with the leader.
Bitcoin fell 0.9% to $80,133.1 by 02:14 ET on Thursday, ending a brief rebound from the prior session. The Federal Reserve's October meeting reinforced bets on more interest rate hikes by the central bank.
A batch of mixed technology earnings in the U.S. and Asia also hampered risk sentiment, and broader crypto prices retreated in tandem with Bitcoin.
Tech earnings spill into crypto
September quarter earnings from Alphabet and Samsung Electronics sparked deep losses in their shares, which spilled over into broader markets. That gave crypto negative cues, because the sector tends to track tech stocks.
Fed holds rates, but a December hike looks likely
The Fed left interest rates unchanged at 4.0% on Wednesday evening, as widely expected. Two members of the central bank's 12-member board called for a 25 basis point hike.
Fed Chair Kevin Warsh declined to offer any clear forward guidance after the meeting. He did highlight resilience in the U.S. economy, especially in private spending and the labor market, and reiterated his commitment to the Fed's 2% annual inflation target.
Markets viewed his comments as likely setting the stage for a rate hike in the coming months. CME Fedwatch showed a 79.8% chance for a 25 bps hike in December, up from 73.4% a week ago.
The 10-year Treasury yield traded back above the 5% level after briefly surging following the meeting. Higher rates bode poorly for speculative, risk-heavy assets like crypto because they raise the opportunity cost of investing in the sector.
Altcoins weaken alongside Bitcoin
Ether fell 1.5% to $2,316.64, while XRP fell 2.2%. Solana shed 1.7% and Cardano slid 3.6%.
BNB outperformed with a 1.3% gain, while Dogecoin and $TRUMP each fell 1.6%.
Source: Investing.com
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