Crypto Price Today: Tron and XRP decline up to 10% while Litecoin rises 7% as Bitcoin drops below $27,500

Crypto Price Today: Tron and XRP decline up to 10% while Litecoin rises 7% as Bitcoin drops below $27,500

While its largest peer Ethereum outperformed and jumped over 3% to easily hold above the $1,800 level, Bitcoin climbed another 2% to race past the $28,000 mark.

There was some profit taking in the cryptocurrency market as higher interest rates drove down riskier commodities. In defiance of expectations that it would become more dovish in the midst of the financial crisis, the US Federal Reserve raised interest rates by an additional 25 basis points.

The US Fed, however, indicated that a pause in rate hikes is imminent but ruled out the possibility of a rate reduction in the coming years. Overall, the jitters resurfaced and the risk-averse attitudes weighed on the crypto assets.

Following the interest rate increases, Bitcoin experienced a sharp decline, falling below the $28,000 threshold and maintaining close to $27,300. The price of Ethereum, its biggest rival, fell below the $,1750 mark by about 4%. The cryptocurrencies were in a lot of pain.

Only Litecoin and the USD Coin, which is pegged to the US currency, saw significant price declines on Thursday. A 10% decline was seen in Tron while a 9% decline was seen in XRP. BNB and Solana each saw a 5% decline. Litecoin, the lone gainer, increased by about 7%.

With a recent decline of up to 3%, the market capitalization of all cryptocurrencies was trading sharply lower at $1.15 trillion. However, the overall trading amount increased slightly by close to 2%, or about $68.05 billion.

The interest rate increase of 25 basis points declared by the Fed at the most recent FOMC meeting halted the Bitcoin rally. “While other digital assets followed a similar pattern, Bitcoin and Ethereum stood out. Investors are uneasy due to the US’s changing banking situation, and markets are predicted to stay choppy.