Bitcoin fell below US$25,000 for the first time in three months after yesterday’s hawkish comments from the US Federal Reserve.
The largest coin by market cap slipped by 4% to US$24,869, its lowest level since March.
The sharp drop in price was sparked just hours after the Fed announced it would be pausing rate hikes for the first time in 15 months but raised the number of future rate hikes it expects to make.
“Cryptos have been hammered on the back of the hawkish interest rate skip, the fact that the Fed believe that there will be two more interest rate hikes this year, have made traders worried,” said Naeem Aslam, chief investment officer at Zaye Capital Markets.
Indications of further rate hikes tend to dent enthusiasm for risk assets such as cryptocurrencies.
Ethereum fell 6.2% to US$1,632, with the second-largest coin by market cap also at its lowest level since March.
Among some of the altcoins, Litecoin was down 6% to US$72.64, Solana lost 1.6% to US$14.82 and Polygon shed 4.7% to US$0.6152.