Bitcoin falls below $65K as cryptocurrencies see sharp decline

AFRICAN STOCKS AND FINANCEAugust 1, 2024 at 1:38 PM UTC

TLDR

Cryptocurrencies see decline after Federal Reserve meeting with Bitcoin dropping to $64,500 from $66,500 level.
Rising geopolitical risks following Iran's retaliation orders contribute to the market sell-off.
Investors shift focus as Federal Reserve maintains benchmark interest rates with no hint of expected rate cut in September.

Cryptocurrencies experienced a sharp decline on Wednesday as rising geopolitical risks captured investors' attention following the conclusion of the July Federal Reserve meeting, which saw benchmark interest rates remain unchanged with little indication of a widely expected rate cut in September.

Bitcoin (BTC) dropped to $64,500 from around the $66,500 level where it was trading after Federal Reserve Chair Jerome Powell's press conference, falling more than 2% over the past 24 hours.

The sell-off occurred as the New York Times reported that Iran's leaders ordered retaliation against Israel for the killing of Hamas leader Ismail Haniyeh in Tehran, increasing the risk of a broader conflict in the region.

Key Takeaways

While digital assets suffered losses, most traditional asset classes climbed higher during the day. The 10-year U.S. bond yields fell by 10 basis points, gold rose 1.5% to $2,450, slightly below its record highs, and WTI crude oil prices surged by 5%. Equities also saw significant gains, with the tech-heavy Nasdaq 100 index rebounding 3% and the S&P 500 closing the session 2.2% higher, led by chipmaker giant Nvidia's (NVDA) 12% gains. The differing performances between asset classes could be attributed to traders' positioning before the Federal Reserve meeting.

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