Bitcoin (BTC) slumped below $100,000 after Federal Reserve Chairman Jerome Powell said the central bank is not allowed to own Bitcoin and is not looking for a law change.
Powell’s comments instantly impacted the market, with the price of BTC dropping considerably, dropping below $100,000 to a low of $99,047 before recovering and rising to its current level. BTC is currently down just over 2% and trading around the $101,200 mark.
Speaking about the pullback, ChangeNOW CMO Pauline Shangett noted,
“Powell’s comments sent shockwaves through the crypto market with over $700 million in liquidations in just 24 hours, reflecting the high volatility of the crypto space.”
The market cap also slumped, dropping by 3.50% to $3.52 trillion. Almost all major cryptocurrencies, including Ethereum (ETH), Solana (SOL), Ripple (XRP), Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), Toncoin (TON), and Polkadot (DOT) are trading in the red.
Bitcoin (BTC) Slumps After FOMC Meeting
Bitcoin (BTC) and the crypto market retreated after the Federal Open Market Committee (FOMC) announced plans to slow down rate cuts in 2025, with the benchmark federal funding rates declining to a range of 4.25% and 4.50%. The Fed cut interest rates by 25 basis points, lowering the federal funds rate. The decision matched expectations from analysts and market watchers. Despite this, the crypto markets registered a substantial decline following the decision. According to analysts, the market reaction was not because of the December rate cut, which was along expected lines, but the outlook for 2025.
Federal Reserve Chai
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Author: Amara Khatri
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