Bitcoin and ethereum plunge Thursday after Fed rate hike

Bitcoin plummeted towards the $20,000 mark on Thursday after the US Federal Reserve once again decided to raise interest rates. The Fed raised rates by 75 basis points (bps), choosing to maintain its current hawkish policy. Ethereum, which initially jumped on the news, also fell during today’s session.

Bitcoin

Bitcoin fell during Thursday’s session, due to a rise in bearish sentiment, following yesterday’s Fed meeting.

Following the Federal Reserve’s decision to maintain the current hawkish policy by raising rates, Bitcoin reached a high of $20,742.81.

However, that sentiment has changed, as markets now expect this to be the last such hike by the Fed, which could begin to pivot.

Bitcoin fell to a low of $20,087.13 earlier in the day, and came as bears tried to take the token below $20,000. At the time of writing, the 14-day Relative Strength Index (RSI) now stands at 51.84, which is below a low of 53.00.

If this momentum continues into the weekend, many expect gold prices to improve. Bitcoin is trading near its long-term support of $19,600.

Ethereum

In addition to bitcoin, ethereum was also volatile after the Fed’s decision to raise rates by 75 basis points. Ethereum, which initially peaked at $1,613.41 after the news was announced, slipped to an intraday low of $1,507.24 on Thursday.

The move sees the token fall for a fifth consecutive session, following last week’s gains, which saw prices hit a six-week high.

Looking at the chart, the decline has sent the RSI to a long-term low of 58.00, with bears trying to break below that point. At the time of writing, the bulls have so far rejected this attempt, with the world’s second largest chip bouncing back somewhat.

Ethereum is currently trading at $1,531.53, with the 10-day moving average (red) still pointing up, which could be a sign of resistant bulls waiting for the moment to increase pressure on the market.