Bitcoin Price Plummets Following Powell’s Comments
Bitcoin (BTC) dropped to $100,300 after Federal Reserve chair Jerome Powell made hawkish statements during the Federal Open Market Committee’s (FOMC) meeting. Despite an expected interest rate cut of 25 basis points, the US interest rate remained in the 4.5% to 4.75% range.
Crypto Market Reactions
- Bitcoin fell 5.7% to $100,740 in the past 24 hours.
- Ethereum (ETH) decreased by 6.8% to $3,697.
- BNB and Solana were down 4.6% and 8.1%, respectively.
- Dogecoin (DOGE) saw an 11% correction, dropping to $0.348.
Stock Market Response
The US stock market also reacted negatively to Powell’s remarks, with the S&P 500 and Nasdaq 100 experiencing declines. Coinbase and MicroStrategy stocks also saw losses.
Powell’s Outlook for 2025
Powell mentioned a slower pace for 2025, indicating that future rate cuts will depend on market data. The London Stock Exchange revealed expectations for fewer rate cuts in 2025 compared to previous predictions.
Market Predictions
- US rate futures are pricing in just two rate cuts in 2025.
- Rates futures markets expect 37 basis points of cuts in 2025.
- Prediction market odds indicate a 90% chance of no rate cuts in January 2025.
Fed’s Stance on Bitcoin
Powell clarified that the Federal Reserve is not allowed to own Bitcoin, stating that this matter would require congressional consideration. He expressed optimism for the upcoming year but did not provide further comments on the potential Bitcoin Strategic Reserve.
