Bitcoin loses $100k as markets continue to slide in reaction to 2025 Fed slowdown

Bitcoin (Bitcoin) lost the $100,000 threshold after recording a 6.4% drawdown in the last 24 hours, Priced at $97,000 As of press time.

Bitcoin fell to a low of $96,233 before attempting a recovery. As a result, cryptocurrency derivatives recorded approximately $1.2 billion in liquidations during this period, based on Queen Glass Data.

The sharpest corrections among major altcoins followed Bitcoin’s decline, with the cryptocurrency’s total market cap falling 9% in the same period to $3.63 trillion.

Ethereum (Ethereum) was trading at $3,372 after falling 10% in the past 24 hours, while Solana (Sol) recorded a similar collapse to a low of $187.

Chainlink (connection) and Dogecoin (Doug) had the worst performance among the 20 largest cryptocurrencies by market cap, with corrections of 17.3% and 18% respectively.

The collapses are likely the result of the Fed Chairman Jerome Powell Statement on US interest rate policy.

On December 18, Powell indicated that interest rates could be more cautious after the recent cuts, which analysts see as two rate cuts next year. In addition, the Fed Chairman noted that potential cuts will depend on market data and will take some time for inflation to reach 2%.

Despite the market uncertainty regarding the US economy, Powell expressed optimism in his speech yesterday:

“It’s in a really good place, our policy is in a really good place (and) I’m anticipating another good year next year.”

Possible closure

In addition to the state of unease created by Powell’s recent statements, the US Congress faces an imminent partial government shutdown, with only two days remaining to pass the spending bill.

President-elect Donald Trump He rejected a bipartisan stopgap measure aimed at extending government funding through March 14, 2025, and insisted that lawmakers first address the national debt ceiling.

In response, Republicans in Congress are developing an alternative plan in line with Trump’s demands to secure sufficient support in the House of Representatives and the Senate.

Without legislative action, the government shutdown, scheduled to begin on December 21, would disrupt many services and delay federal employee paychecks.

Trump has also proposed eliminating the debt limit entirely, a proposal that is likely to be criticized over concerns about fiscal irresponsibility.

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