- Major cryptocurrencies took a hit after Federal Reserve minutes showed that a rate hike could be on the table if inflation rates remain sticky.
- Bitcoin fell below $67,000, while Solana and XRP led losses among crypto majors.
- On Stocktwits, retail sentiment remained mixed, with some altcoins showing ‘bullish’ readings despite price weakness.
Solana (SOL) and Ripple’s XRP (XRP) led losses among crypto majors on Wednesday night as Bitcoin (BTC) fell back to $66,000 after minutes from the latest Federal Open Market Committee meeting indicated the Fed could still lift rates if inflation remains elevated.
The minutes, released on Wednesday, showed officials in favor “two-sided” guidance, including the possibility of further rate hikes. An increase in interest rates has usually been a bearish signal for risker assets like cryptocurrencies since it puts pressure on liquidity. Borrowing becomes more expensive, financial conditions tighten, and speculative assets struggle.
The dip also comes ahead of the initial jobless claims report, scheduled to be released on Thursday, with traders watching for clues on how monetary policy may evolve in the coming months and whether the Federal Reserve has room to ease or will need to keep rates elevated.
Fed Minutes Trigger Pullback In Crypto
Bitcoin’s price edged 0.9% lower to around $66,700 in the last 24 hours. On Stocktwits, retail sentiment around the apex cryptocurrency continued to trend in ‘bearish’ territory, alongside ‘low’ levels of chatter.
The overall cryptocurrency market fell 1.5% in the last 24 hours to $2.3 trillion. CoinGlass data showed around $223 million in liquidations, with more long bets being wiped out than short positions, amounting to around $162 million.
Solana, XRP, Cardano Take The Biggest Hits
Solana, XRP and Cardano (ADA) fell more than 3% each in the last 24 hours. Solana’s price was down 3.6% in the last 24 hours to around $81.50, while XRP’s price dipped 3.5% in the last 24 hours to around $1.42. Both saw retail sentiment also trending in the ‘bearish’ zone over the past day.
Meanwhile, Cardano’s price was down 3.1% in the last 24 hours to $0.27 but retail sentiment around the altcoin continued to trend in ‘bullish’ territory over the past day.
Dogecoin (DOGE), Binance Coin (BNB) and Ethereum (ETH) were also in the red, taking a bigger hit than Bitcoin in the last 24 hours. Dogecoin’s price fell 2.4% in the last 24 hours, while BNB’s price fell 1.9% and Ethereum’s price shed 1.2%, dipping back below $2,000.
Among the three, only Ethereum saw retail sentiment trending in ‘bearish’ territory over the past day. Dogecoin and Binance Coin saw retail sentiment in the ‘bullish’ zone, with chatter at ‘extremely high’ levels for DOGE.
Read also: MSTR's Michael Saylor Says ‘Bitcoin Is Winning’ Amid Crypto Winter, Sees ‘Glorious Summer’ Ahead
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