Over the past 24 hours, the top cryptocurrencies have experienced a downward trend. Bitcoin (BTC), the largest cryptocurrency by market cap, fell 3.8%.
The world's second-largest cryptocurrency, Ethereum (ETH), saw an even larger decrease, dropping by 6.1%.
Other notable cryptocurrencies also registered losses. Ripple-affiliated XRP lost 6.4% of its value despite the hype surrounding the Hinman Documents.
Cardano (ADA) fell by 5.8%, and meme coin Dogecoin (DOGE) dropped by 2.7%.
As reported by U.Today, the crypto market plunge comes after the latest Federal Reserve rate hike decision. The Fed has maintained steady rates for the first time in over a year, but inflation persists above the central bank's 2% target.Fed officials anticipate more rate hikes later this year, a prediction that has cast uncertainty over the crypto market. As pointed out by Jeffrey Gundlach of DoubleLine Capital, the path of rate hikes appears somewhat uncertain, despite a consensus on the need for further increases.
Market technician Ryan Detrick pointed out in a recent tweet that 12 out of 18 Fed members anticipate at least two more rate hikes this year. He suggested that the median terminal rate, raised to 5.6%, came in as "more hawkish" than expected. This stance appears to have had a reverberating impact on the cryptocurrency market as investors respond to the prospect of higher interest rates.