Bitcoin price today: BTC rallies on dovish Fed, Powell
Bitcoin price rallied on Wednesday, reversing previous losses on back of a dovish Federal Reserve meeting. At the time of writing, Bitcoin price was trading at $66,788, up 4.5% on the day.
Earlier in the day, a broader risk-off move in currency markets saw traders pivot into the dollar while collecting profits in Bitcoin after it surged to record highs of over $73,000 earlier in March.
The dollar index hit a two-week high before the conclusion of a Fed meeting later in the day, where the central bank is widely expected to keep rates steady and offer more cues on when it plans to begin cutting interest rates.
Bitcoin price had fallen as far as $60,771.1 earlier in the day.
Adding to the downward pressure on Bitcoin, the token saw a flash crash on crypto exchange BitMEX, where it sank as low as $8,900 following a series of massive sell orders on Tuesday. BitMEX said it was investigating potential wrongdoing.
Since reaching its recent all-time highs, the entire cryptocurrency market had lost approximately $400 billion in value, with significant declines also seen in other digital currencies like Ether and Solana. However, ahead of the FOMC meeting, Bitcoin and other cryptocurrencies have made some gains.
«We are seeing a natural market shift at this point, which is a culmination of several important factors,» Nejc Krzan, head of NiceX Exchange, told Investing.com.
Among other things, he added that «many investors who recently came into the market who were hoping the BTC price would continue to break through the all time high and rise further, have sold to take short term gains.» This is likely the key reason why Bitcoin price is correction from fresh record highs.
Looking ahead, Jonny Huxtable, CEO of LinkPool, told
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