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Bitcoin (Bitcoin) to a low of $100,300 after hawkish comments by the 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 interest rate to… Range 4.5% to 4.75%.
Bitcoin was trading at $100,740 as of press time, down 5.7% over the past 24 hours, based on Crypto Slate data.
The broader cryptocurrency market suffered similar losses, with Ethereum (Ethereum) down 6.8 % over the past day to $ 3,697 as of press time, while BNB Bank And Solana (Sol) by 4.6% and 8.1%, respectively.
Dogecoin (Doug) recorded the worst performance among the top ten after an 11% correction took the price to a low of $0.348.
The US stock market also reacted negatively to Powell’s comments. The S&P 500 closed down 1.55%, while the Nasdaq 100 contracted 2%.
Coinbase COIN stock closed with a loss of 6.6%, while… Microstrategy MSTR corrected by 5.7%.
A slower pace heading into 2025
Powell noted that the interest rate could now be more cautious after the recent cuts, adding that the decision to move more slowly reflects high inflation expectations and the path of future uncertainty.
In addition, he said any potential interest rate cuts in 2025 would depend on next year’s market data.
The London Stock Exchange revealed that US interest rate futures are pricing in only two interest rate cuts next year. Meanwhile, interest rate futures markets now expect cuts of 37 basis points in 2025, compared to the previous forecast of 49 basis points.
In addition, the odds in the prediction market are 90% of interest rates not being cut in January 2025.
However, Paul male He is optimistic about the coming year and adds:
“It’s in a really good place, our policy is in a really good place (and) I’m anticipating another good year next year.”
Owning Bitcoin is not permitted
The Federal Reserve Chairman was also questioned about the growing interest in the United States creating a strategic reserve for Bitcoin. He responded that the Fed is not allowed to own bitcoin, and that is something Congress should consider.
Then Powell added:
“But we’re not looking to change the law at the Fed.”
He did not comment further on this matter.
