In a dramatic turn of events, the value of Bitcoin has dipped below the $25,000 mark for the first time since March 17. This significant drop, catalyzed by Bitcoin’s tumble of 4% in just 30 minutes on June 15, sent shockwaves through the cryptocurrency market. At the time of writing, Bitcoin hovers just above $24,985, reflecting the tumultuous journey it has undertaken in recent days.

It’s worth noting that Bitcoin had been holding relatively steady at around $26,000 over the past week, seemingly unfazed by the SEC’s legal actions against major cryptocurrency exchanges, Coinbase and Binance. Notably, during this period, Binance witnessed customers withdrawing over $780 million in a mere 24 hours.

However, the crypto world experienced a sudden jolt as Bitcoin dropped below $25,000, coinciding with a significant announcement from the Federal Reserve. The Fed declared a pause in its interest rate hikes after nearly 15 months of consecutive increases, a move designed to curb rising inflation.

This pause, while temporarily soothing for traditional markets and risk assets, has cast a shadow of uncertainty over Bitcoin’s future. Federal Reserve Chairman Jerome Powell’s remarks have raised concerns among cryptocurrency analysts. Powell’s assertion that the current pause is merely a respite, hinting at potential future rate hikes, has sparked speculation about the digital currency’s resilience in the face of looming changes.

According to market analyst Josh Gilbert at eToro, Bitcoin’s recent bullish run was largely rooted in expectations of declining inflation and a subsequent decrease in interest rates. However, the Fed’s decision to halt rate hikes has prompted questions about whether Bitcoin’s growth can be sustained under the specter of potential rate hikes in the long run.

The repercussions of Bitcoin’s descent below $25,000 have also been felt across the cryptocurrency landscape. Ether, the second-largest digital coin by market capitalization, experienced a decline of more than 5%, plummeting from $1,727 to $1,631 in a similar timeframe. Altcoins, too, have not been spared, with numerous tokens labeled as securities in the SEC’s legal battle registering 3% drops. Cardano, Polygon, and Solana are among the affected, with declines of 3.4%, 3.3%, and 2.8%, respectively.

Marcel Pechmann, an analyst at Cointelegraph, suggests that current Bitcoin options data indicate further declines, especially considering the regulatory hostility faced by the crypto industry in the U.S. combined with the prospect of additional rate hikes from the Federal Reserve in the months ahead. These factors paint a complex and ever-evolving picture for the future of cryptocurrencies, leaving investors and enthusiasts alike watching closely as the market navigates this challenging terrain.