Bitcoin, which had recently reclaimed the $66,000 level, slipped back into the $62,000 range. Analysts said sentiment weakened as concerns over a possible U.S. Federal Reserve (Fed) rate hike overlapped with funding worries surrounding the largest bitcoin-holding corporations, Strategy.
According to cryptocurrency market tracker CoinMarketCap on the 19th, bitcoin was trading at $62,820 as of 8:30 a.m., down 2.51% from 24 hours earlier. After falling to the $60,000 level on the 6th, bitcoin rebounded and broke above $66,000 on the 16th, but then turned lower again.
Altcoins also broadly weakened. Ether fell 2.37% to $1,707, while Ripple dropped 3.63% to $1.14. Solana likewise declined 3.56% to $69.43 in transaction.
What weighed on sentiment was the Fed's hawkish stance. The Fed kept the federal funds rate unchanged at 3.5% to 3.75% at the Federal Open Market Committee (FOMC) meeting on the 17th. While the hold itself matched market expectations, the tougher-than-expected path for future rates broadened risk-off sentiment.
Concerns surrounding Strategy also added pressure. Strategy, the world's largest bitcoin-holding corporations, has been purchasing bitcoin with funds raised by issuing perpetual preferred shares "STRC." However, with STRC recently sinking well below its par value ($100), some noted funding conditions could deteriorate. In the market, worries are growing that if Strategy's capacity for additional purchases shrinks, bitcoin demand could weaken.