Bitcoin Price Declines as U.S. Fed Keeps Rates Steady
Bitcoin (BTCUSD) price declined to $75,762.88 on Thursday amid hawkish Federal Reserve policy and escalating geopolitical tensions. Macro policy and risk-off sentiment from the US Federal Reserve’s (Fed) decision to keep rates unchanged, reinforcing a “higher-for-longer” outlook.
Reflecting sustained restrictive macroeconomic policy, the US Federal Reserve kept rates at 3.50%-3.75% on April 29, citing persistent inflation from the Iran conflict.
This dashed hopes for near-term easing, triggering a risk-off move across crypto and stocks. Over $500 million in total market liquidations occurred after the announcement, with Bitcoin leading the decline.
The market is repricing for sustained high interest rates, reducing the appeal of non-yielding assets like Bitcoin. President Trump’s rejection of a deal to reopen the Strait of Hormuz spiked oil prices, stoking inflation fears.
Concurrently, Bitcoin saw $140.26 million in liquidations (up 116% in 24h), as leveraged long positions were forced out amid thin spot volumes.
Geopolitics amplified macro fears, while high leverage turned a pullback into a sharper drop. The crypto market is anticipated to rebound on probable de-escalation in the Middle East or a rebound in perpetual futures funding rates from current near-zero levels.
Bitcoin is testing key support at the 78.6% Fibonacci retracement level of $75,584. The 7-day Relative Strength Index at 39.63 shows bearish momentum but isn’t oversold. Spot volumes are at bear-market lows, indicating apathy that can precede a volatility spike.
The trend is bearish in the short term, but the market lacks the conviction for a deeper crash without new catalysts. The confluence of restrictive macro policy and geopolitical friction has overwhelmed spot demand, leading to a leveraged unwind. XRP Price Slides to $1.36, Ripple Stablecoin Lists on OKX
