On the night of Wednesday, 18th December 2024, Bitcoin, the flagship crypto asset dipped below $100k dropping 6% in 24 hours to trade at $99,0477 following the new Federal cut rates announced by the Federal Open Market Committee.
The United States Federal Reserve Chairman, Jerome Powell, yesterday announced the new data on the Federal cut rate. That is, the Committee has now decided to cut the Federal Fund rates by a 25 basis point.
Powell rejected the idea of the United States forming a national Bitcoin reserve. In his words,”the central bank is not looking for a law change and is not allowed to hold Bitcoin”.
According to Crypto Times, the impact of his comment was felt across the market, with major altcoins seeing significant losses. For example, Ethereum (ETH) dropped by 6.5%, XRP by 12.64%, the GMCI index that tracks top cryptocurrencies performance also dipped by 7.8%, to name a few.
This will be the first time since the first week of December for Bitcoin to fall below the $100k price. Earlier this week, Bitcoin had briefly surged to a new all-time high of $108k.
Bitcoin’s recent rally was fueled when the United States President-Elect, Donald Trump, made comments about creating a national Bitcoin Reserve. Powell’s recent comment may not be all the story behind the decline of Bitcoin.
Crypto Enthusiasts are watching to see how the market continues to react to political shifts and economic changes in the future.
