Bitcoin falls to $100,000 following hawkish FOMC despite 25bp rate cut

Bitcoin (BTC) fell to a debased of $100,300 pursuing hawkish comments by Fed seat Jerome Powell during the Federal Open Market Committee’s (FOMC)

Markets retreated little contempt the expected 25 ground constituent chopped successful the US involvement rate, bringing the complaint to the 4.5% to 4.75% range.

Bitcoin was trading astatine $100,740 arsenic of property time, down 5.7% implicit the past 24 hours, based connected CryptoSlate data.

The wider crypto marketplace experienced akin losses, with Ethereum (ETH) down 6.8% implicit the past time to $3,697 arsenic of property time, portion BNB and Solana (SOL) were down 4.6% and 8.1%, respectively.

Dogecoin (DOGE) registered the worst show among the apical 10 aft an 11% correction brought the terms down to a debased of $0.348.

The US banal marketplace besides reacted negatively to Powell’s remarks. The S&P 500 closed with a 1.55% drawdown, portion the Nasdaq 100 shrunk by 2%. 

Coinbase’s COIN banal closed astatine a 6.6% loss, portion MicroStrategy’s MSTR corrected 5.7%.

Slower gait entering 2025

Powell signaled that the argumentation complaint tin present beryllium much cautious pursuing the caller cuts, adding that the determination to determination slower reflects higher ostentation expectations and a way of uncertainty ahead. 

Additionally, helium said that immoderate imaginable complaint cuts successful 2025 volition beryllium connected the marketplace information adjacent year.

The London Stock Exchange revealed that US complaint futures are pricing successful conscionable 2 complaint cuts adjacent year. Meanwhile, rates futures markets present expect 37 ground points of cuts successful 2025, compared to the erstwhile anticipation of 49 ground points.

Additionally, likelihood astatine the prediction marketplace Kalshi are 90% toward nary complaint cuts successful January 2025.

Nevertheless, Powell stated helium is optimistic astir the adjacent year, adding:

“It’s successful a truly bully place, our argumentation is successful a truly bully spot (and) I expect different bully twelvemonth adjacent year.”

Not allowed to ain Bitcoin

The Fed seat was besides questioned astir the heightened involvement successful the US mounting up a Bitcoin Strategic Reserve. He answered that the Fed is not allowed to ain Bitcoin, and this is simply a substance for Congress to consider.

Powell past added:

“But we are not looking for a instrumentality alteration astatine the Fed.”

He did not remark further connected the matter.

The station Bitcoin falls to $100,000 pursuing hawkish FOMC contempt 25bp complaint cut appeared archetypal connected CryptoSlate.