Bitcoin Pulls Back on Hawkish Fed, Traders Eye $84,000
Hawkish comments from the Federal Reserve chair revived expectations that US interest rates could remain elevated or rise further, weighing on risk assets. Bitcoin was particularly vulnerable after its recent rally encouraged traders to build leveraged positions. The shift in the monetary-policy outlook matters because tighter financial conditions can reduce demand for speculative assets and amplify volatility across cryptocurrency markets.
Bitcoin retreated from its recent high to $76,877 in the latest trading session, triggering nearly $480 million in liquidations across the crypto market. The pullback stalled the rally but did not erase broader optimism among derivatives traders, most of whom remained positioned for further gains. Market participants now view $84,000 as Bitcoin’s next major upside target, suggesting long-term sentiment remains bullish despite the short-term correction.
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The history behind this eventBitcoin Rally Falters Ahead of Fed Rate Decision as Markets Await Powell's Inflation Remarks
Bitcoin is highly sensitive to expectations for U.S. interest rates and liquidity, while Federal Reserve rate decisions often drive crypto-asset valuations. Markets are now focused on how Chair Jerome Powell will assess changes in inflation and oil prices. His remarks could shape expectations for rate cuts and determine whether capital continues flowing into risk assets.
Bitcoin briefly touched $76,000 ahead of the Federal Open Market Committee's April 29 decision before retreating to around $74,000, including a short-lived intraday drop below $75,000. Ether, meanwhile, approached $2,200. Traders turned cautious and watched for signs of a hawkish tilt in Powell's post-meeting comments.
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