Bitcoin (BTC) fell to a low of $100,300 following hawkish comments from Fed Chairman Jerome Powell during the Federal Open Market Committee (FOMC) meeting.
Markets fell despite the expected 25 basis point cut in the US interest rate, bringing the rate back to the range of 4.5% to 4.75%.
Bitcoin was trading at $100,740 at press time, down 5.7% over the past 24 hours, based on CryptoSlate data.
The broader crypto market saw similar losses, with Ethereum (ETH) down 6.8% over the past day to $3,697 at press time, while BNB and Solana (SOL) were down 4.6% and 8.1%, respectively.
Dogecoin (DOGE) recorded the worst performance among the top 10 after an 11% correction took the price to a low of $0.348.
The US stock market also reacted negatively to Powell’s remarks. The S&P 500 closed 1.55% lower, while the Nasdaq 100 fell 2%.
Coinbase’s COIN stock closed with a 6.6% loss, while MicroStrategy’s MSTR corrected 5.7%.
A slower pace as 2025 approaches
Powell said the policy rate could now be more cautious following recent cuts, adding that the decision to move more slowly reflected higher inflation expectations and a path of uncertainty ahead.
Additionally, he said any potential rate cuts in 2025 will depend on next year’s market data.
The London Stock Exchange revealed that US rate futures only price in two rate cuts next year. At the same time, rate futures markets now expect a decline of 37 basis points in 2025, compared to a previous forecast of 49 basis points.
Moreover, on the Kalshi prediction market, the chances are 90% towards no rate cut in January 2025.
Nonetheless, Powell expressed optimism for next year, adding:
“We are in a very good position, our policy is in a very good position (and) I expect another good year next year.”
Not allowed to own Bitcoin
The Fed Chairman was also asked about the United States’ increased interest in creating a strategic Bitcoin reserve. He responded that the Fed is not allowed to own Bitcoin, and that this is an issue that needs to be considered by Congress.
Powell then added:
“But we’re not looking to change the law at the Fed.”
He made no further comments on the matter.
Bitcoin Market Data
At the time of going to press 00:04 UTC December 19, 2024Bitcoin is ranked #1 in terms of market capitalization and the price is down 5.48% in the last 24 hours. Bitcoin has a market capitalization of $1.99 trillion with a 24-hour trading volume of $93.95 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of going to press 00:04 UTC December 19, 2024the total crypto market is valued at $3.48 trillion with a 24 hour volume of $246.33 billion. Bitcoin dominance is currently at 57.03%. Learn more about the cryptocurrency market ›
