Bitcoin News Today: BlackRock Crypto SPX6900 Plummets 17.44% After Fed Rate Hold

BlackRock’s SPX6900 (SPX), one of the firm’s largest cryptocurrency holdings, emerged as the top 100 coins’ worst performer following the U.S. Federal Reserve’s July 31 decision to hold interest rates steady. The meme coin, which had been the best-performing coin over the previous three months, plummeted 17.44% within 24 hours of the announcement, trading at $1.64 at press time with a market cap of around $1.54 billion and a daily trading volume of approximately $129.1 million [1].

The sharp decline followed a 204% surge in the 90 days prior, making it highly susceptible to correction pressure. On August 1, technical indicators turned decisively bearish as SPX6900 broke below a rising wedge pattern, signaling a potential trend reversal. Expanded Bollinger Bands accompanied the breakdown, with the price dropping below the middle band, and the MACD histogram turning negative for the first time since mid-July [1].

The broader crypto market also faced a significant drawdown. In the wake of new tariff discussions, the total market cap fell by $150 billion, dropping from $3.89 trillion to $3.74 trillion. Altcoins were hit hardest, with the Altcoin Season Index plummeting to 34. Notably, SPX’s 30-day correlation with Bitcoin (BTC) rose to 0.82, indicating heightened sensitivity to Bitcoin’s movements [1].

The performance of SPX underscores the growing volatility in the crypto market, particularly for tokens that have seen rapid price appreciation over short periods. As institutional involvement in crypto assets continues to grow, the behavior of tokens linked to major financial institutions like BlackRock may serve as a barometer for broader market sentiment and risk appetite.

Source: [1] This BlackRock crypto is the biggest market loser among top 100 coins (https://finbold.com/this-blackrock-crypto-is-the-biggest-market-loser-among-top-100-coins/)