It was starting to look like a rally already in progress for Bitcoin (BTC-USD), the premier and original cryptocurrency. But then, the bottom fell out, and Bitcoin began a new slide downward, breaking through $27,000 and falling from there. The loss also hit several major Bitcoin stocks as well, with MicroStrategy (NASDAQ:MSTR), Riot Platforms (NASDAQ:RIOT), Marathon Digital (NASDAQ:MARA), and Coinbase (NASDAQ:COIN) down 2.27%, 3.29%, 0.8%, and 2.75%, respectively, at the time of writing.
Ahead of the latest Federal Reserve meeting, Bitcoin prices ran up to $27,400 a coin, making some wonder if, perhaps, the good times were indeed back in play. However, those hopes were thoroughly dashed. While the Federal Reserve ultimately paused its frantic rate hiking scheme, reports suggest that at least one more hike is in the cards by the end of the year. Further, the projections for the federal funds rate were increased to match, with the forecast rates for the end of 2024 and the end of 2025 both higher.
That means that interest rates are likely to go higher and stay higher for a longer period of time than initially expected. That, in turn, makes loans tougher to come by and tougher to pay back. While some, like Xive founder and CEO Didar Bekbauov, look for the rate hikes to drive further interest in Bitcoin, others, like QCP Capital, expect that the Fed’s moves won’t produce much volatility within Bitcoin as it’s in a “low volatility regime” right now.
What is the Best Bitcoin Stock?
Meanwhile, Bitcoin stocks also took some punishing hits today. Riot Platforms, the only Strong Buy of the lot by analyst consensus, took the biggest hit, but it also has the strongest upside potential. With an average price target of $19.94, Riot Platforms stock offers investors 105.78% upside potential. Meanwhile, Coinbase’s $82.74 average price target means this Hold-rated stock can only offer 11.18% upside potential.