By Nermeen Nabil Khear 
Bitcoin (BTC) experienced a sharp decline, briefly falling below the psychological $100,000 mark after the Federal Reserve announced a 25-basis-point rate cut and signaled fewer rate reductions in 2025 than anticipated.
The cryptocurrency dropped by nearly 3% on Thursday, hitting an intraday low of $98,792 before stabilizing at around $101,740 level. Fed Chair Jerome Powell’s hawkish remarks weighed heavily on market sentiment.
SUMMARY OF FED FOMC STATEMENT:
1. The Fed delivered a ‘Hawkish Cut’.
2. The FOMC cut rates by 25 basis points to 4.50%, and signaled fewer cuts in 2025.
3. The Fed’s dot-plot projected another 50bps of rate cuts in 2025, which would take interest rates to 3.9%.
The… pic.twitter.com/Y8qjlhrpdi
— Jesse Cohen (@JesseCohenInv) December 18, 2024
“We’re not allowed to own Bitcoin,” Powell stated, addressing speculation about a Strategic Bitcoin Reserve. Powell clarified that any potential reserve would require Congressional consideration, reinforcing the Fed’s neutral stance on digital assets.
Strategic Bitcoin Reserve Uncertainty
President-elect Donald Trump’s proposal to create a U.S. Strategic Bitcoin Reserve, which could include 200,000 seized BTC tokens worth approximately $21 billion, has sparked interest.
However, Powell’s cautious tone and lack of support for the initiative dampened investor enthusiasm. The Fed chief emphasized that the central bank does not intend to advocate for Bitcoin stockpiling, leaving the decision to policymakers in Congress.
Analysts attribute Bitcoin’s recent volatility to a combination of profit-taking, hawkish Fed signals, and uncertainty surrounding U.S. fiscal and crypto policies under the incoming administration.
Despite these challenges, Bitcoin has more than doubled in value this year, fueled by optimism over pro-crypto policies and growing institutional adoption.
Bitcoin Price Analysis: Technical Analysis
Bitcoin remains under pressure, consolidating below the $104,252 50-day EMA. Immediate resistance levels are noted at $103,410, with further hurdles at $105,723 and $108,280.
On the downside, immediate support lies at $101,147, with critical levels at $98,656 and $96,482. The RSI at 44 suggests bearish momentum but hints at potential stabilization.
Key Takeaways:
- Bitcoin tested support near $101,147 amid hawkish Fed commentary.
- Powell dismissed speculation about a central bank-led Bitcoin reserve.
- Resistance at $103,410 limits upside potential, with RSI indicating continued caution.
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The post Fed’s Powell Crushes Bitcoin Momentum – Is the $100,000 Floor About to Collapse? appeared first on Cryptonews.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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