Bitcoin (BTC) fell to a low of $100,300 following hawkish comments by Fed chair Jerome Powell during the Federal Open Market Committee’s (FOMC)
The markets fell despite a 25 basis-point cut expected in US interest rates, which would bring the rate down to The range is between 4.5% and 4.75%.
Bitcoin traded at $10,740, an increase of 5.7% in the last 24 hours. CryptoSlate’s data shows.
BNB (down 4.6%), Solana, (down 8.1%) and Ethereum (ETH) (down 6.8%) also suffered similar losses.
Dogecoin’s (DOGE), after a 11% price correction, fell to $0.348.
The US stock market also reacted negatively to Powell’s remarks. The S&P 500 closed with a 1.55% drawdown, while the Nasdaq 100 shrunk by 2%.
Coinbase’s COIN shares closed down 6.6% while MicroStrategy MSTR stocks corrected by 5.7%.
In 2025, the pace will slow down.
Powell indicated that policy rates can be more conservative following the recent reductions, and that a decision to slow down reflects the higher inflation expectations as well as the uncertain path ahead.
In addition, he stated that any possible rate cuts for 2025 depended on the data from next year’s market.
London Stock Exchange has revealed that US futures rates are only pricing in two rate reductions next year. Rates futures market expects a 37-basis point cut in 2025 compared with the 49-basis points previously expected.
On the Kalshi prediction market, 90% of all bets are against a rate reduction in January 2025.
Powell said he was optimistic for the coming year.
“It’s in a really good place, our policy is in a really good place (and) I expect another good year next year.”
Bitcoin is not permitted to be owned
A question was posed to the Fed Chair about the increased interest that the US has in setting up a Bitcoin Strategic Reserve. He said that Congress is the only one who can decide whether or not to allow Congress to have Bitcoin.
Powell, then:
“But we are not looking for a law change at the Fed.”
Further comment on this matter has not been made by the man.
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