Bitcoin (BTC) has found temporary footing at $57,775, halting a nine-day decline triggered by a mixture of profit-taking and investor jitters ahead of the Federal Reserve’s policy decision.
The Fed left interest rates unchanged on Wednesday, but Chair Jerome Powell’s comments regarding inflation stalled hopes for an immediate rate cut. This mixed message followed Bitcoin’s worst monthly performance in April since late 2022, with the price falling nearly 16% as investors booked profits after record highs above $70,000.
Despite the recent decline, Bitcoin remains up 35% year-to-date and has doubled its value from May 2023, buoyed by continued inflows into cryptocurrency exchange-traded funds (ETFs) launched this year.
Profit-taking from investors who entered during previous downturns, combined with early ETF investors seeing significant gains, is believed to be fueling the recent weakness. Bitcoin’s halving event in April, designed to slow the creation of new coins, has also failed to provide price support.
Other major cryptocurrencies have also stabilised on Thursday morning, with Ethereum (ETH) trading at $2,926 and Ripple (XRP) at $0.59 at the time of writing.
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