By Nermeen Nabil Khear 
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)
Markets retreated lower despite the expected 25 basis point cut in the US interest rate, bringing the rate to the 4.5% to 4.75% range.
Bitcoin was trading at $100,740 as of press time, down 5.7% over the past 24 hours, based on CryptoSlate data.
The wider crypto market experienced similar losses, with Ethereum (ETH) down 6.8% over the past day to $3,697 as of press time, while BNB and Solana (SOL) were down 4.6% and 8.1%, respectively.
Dogecoin (DOGE) registered the worst performance among the top 10 after an 11% correction brought the price down to a low of $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 stock closed at a 6.6% loss, while MicroStrategy’s MSTR corrected 5.7%.
Slower pace entering 2025
Powell signaled that the policy rate can now be more cautious following the recent cuts, adding that the decision to move slower reflects higher inflation expectations and a path of uncertainty ahead.
Additionally, he said that any potential rate cuts in 2025 will depend on the market data next year.
The London Stock Exchange revealed that US rate futures are pricing in just two rate cuts next year. Meanwhile, rates futures markets now expect 37 basis points of cuts in 2025, compared to the previous expectation of 49 basis points.
Additionally, odds at the prediction market Kalshi are 90% toward no rate cuts in January 2025.
Nevertheless, Powell stated he is optimistic about the next year, adding:
“It’s in a really good place, our policy is in a really good place (and) I expect another good year next year.”
Not allowed to own Bitcoin
The Fed chair was also questioned about the heightened interest in the US setting up a Bitcoin Strategic Reserve. He answered that the Fed is not allowed to own Bitcoin, and this is a matter for Congress to consider.
Powell then added:
“But we are not looking for a law change at the Fed.”
He did not comment further on the matter.
The post Bitcoin falls to $100,000 following hawkish FOMC despite 25bp rate cut appeared first on CryptoSlate.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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