Bitcoin Reverses Gains as Fed Optimism Proves Short-Lived
By Joseph WilkinsBitcoin fell on Thursday, reversing gains after investor optimism following the Federal Reserve's decision to keep interest rates on hold proved short-lived.The flagship cryptocurrency was down 1.5% at $80,157, after slipping below the $80,000 threshold earlier in the session. Investors will now be monitoring the U.S. September Personal Consumption Expenditures data--the Federal Reserve's preferred measure of inflation--due later Thursday.The Fed's rate-setting committee voted 10-2 to hold rates steady, with two dissents from officials who said they would've preferred to raise rates by a quarter point. Markets are currently pricing in a more than 80% chance that the central bank will hike by a quarter point when it reconvenes in December, according to CME FedWatch.Tensions in the Middle East have also kept a lid on risk sentiment. The U.S. has told several Gulf states to prepare for a short, intense military campaign after the midterm elections, the Wall Street Journal reported.Meanwhile, long-term bitcoin holders own about 4 million bitcoin that were bought between $85,000 and $118,000 apiece, according to analysts from Glassnode. That means many investors are underwater at the current price level of around $80,000. More than half of all long-term holders' coins were bought above that critical level, the analysts said.Ether was down 1.8% at $2,314.72.Write to Joseph Wilkins at [email protected]