Bitcoin price drops below $65,000 as Federal Reserve maintains rate and hints at September cut

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Bitcoin (BTC) has dipped below the $65,000 mark after the United States Federal Reserve kept interest rates unchanged during its latest policy meeting. The decision comes amid the ongoing discussions about the crypto-economic landscape and changes in financial policies.

The Federal Reserve’s decision reflects a cautious approach to manage inflation and support the economic growth of the country. By maintaining the current interest rate levels, the central bank aims to find a balance between price stability and a safe environment for economic recovery, which has caused Bitcoin’s price to decline further.

The Federal Open Market Committee (FOMC) chose to hold interest rates between 5.25 percent and 5.5 percent. On 31st July, the Federal Reserve Chair, Jerome Powell, announced that the economy is growing steadily and showing positive GDP growth and Private Domestic Final Purchases (PDFP).

However, he also stated that consumer expenses have reduced thus aligning with their strategy to curb inflation. He further mentioned that inflation significantly decreased from 7 percent to 2.5 percent, and they’re now aiming for a target of 2 percent to support the economy.

Market analysts did not anticipate any crucial changes from FOMC regarding the interest rates until September. However, a pseudonymous commentator, Seth, pointed out that Bitcoin’s Relative Strength Index (RSI) has now entered the oversold margin, leading to a potential buying opportunity. RSI is a technical indicator used to spot a cryptocurrency’s overbought and oversold conditions in the market.