Bitcoin under $25K for 1st time in 3 months.

The value of Bitcoin (BTC) has dropped below $25,000 for the first time since March 17. This comes after the Federal Reserve made a hawkish announcement, causing another tumultuous week for the crypto industry.

Within 30 minutes on June 15, Bitcoin’s value fell by 4%, from $25,867 to $24,819, according to TradingView data. At the time of writing, Bitcoin had regained some of its value and was hovering just above $25,000.

Last week, Bitcoin’s value was holding around $26,000 as the market reacted to the Securities and Exchange Commission’s legal action against leading crypto exchanges Coinbase and Binance, as well as increasing macroeconomic uncertainty surrounding interest rate signals from the US Federal Reserve.

The sharp drop in value came about three hours after the Federal Reserve announced a pause on interest rate hikes, following a 15-month campaign of rate increases to combat inflation.

While the market was expecting a rate pause, the Federal Open Markets Committee statement hinted at potential future rate hikes, which typically diminishes investor enthusiasm for risk assets such as cryptocurrencies.

According to eToro market analyst Josh Gilbert, Federal Reserve Chair Jerome Powell has made it clear that this is only a temporary pause, which could spell further trouble for Bitcoin in the long term.

“Much of the positivity we’ve seen from risk assets this year, including Bitcoin, is built on the expectation that inflation will fall and interest rates will peak, and then begin to be cut,” Gilbert said.

“Inflation is moving in the right direction but the comments from Jerome Powell signify that rates could stay higher for longer, which would put Bitcoin on the back foot.”

Related: SEC, CPI and a ‘strong rebound’ — 5 things to know in Bitcoin this week

The second-largest cryptocurrency by market cap, Ether (ETH), also experienced a drop, falling more than 5% from $1,727 to $1,631 in the same time frame. Altcoins were also affected, with many tokens labeled as securities in the SEC’s lawsuits experiencing a drop of more than 3%.

Cardano (ADA) is currently down 3.4% in the last 24 hours, while Polygon (MATIC) and Solana (SOL) fell 3.3% and 2.8%, respectively.

According to Cointelegraph analyst Marcel Pechman, current Bitcoin options data suggests a further slide to the downside, especially when considering the regulatory hostility towards the crypto industry in the US combined with the likelihood of further rate increases from the Fed in the coming months.

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