Bitcoin plummeted to $100,800 after the Federal Reserve cut interest rates by 0.25% while signaling a slower pace of cuts for the future. Other cryptocurrencies also faced significant declines. Jerome Powell’s indications suggest a hawkish view towards monetary policy moving into 2025, leading to investor unease.

On Wednesday, Bitcoin experienced a sharp decline, dropping to $100,800 following remarks from Federal Reserve Chair Jerome Powell regarding future interest rate policies. After peaking at approximately $108,000 earlier in the week, Bitcoin registered a 5% decrease within the last 24 hours. Other prominent cryptocurrencies faced similar downturns, with Ethereum falling by 6% to $3,690 and XRP declining 9%. The Federal Reserve’s decision to cut interest rates by 0.25% was preceded by speculation among investors, yet Powell’s indication of a slower pace of cuts moving into 2025 contributed to the market’s negative response.

As inflation trends downward and unemployment begins to rise, the Federal Reserve initiated a series of interest rate cuts starting in September. While market participants anticipated the recent cut, Chair Powell’s statements suggested a more cautious outlook on future reductions. Initially projecting four cuts for 2025, recent revisions indicate an expectation of only two, reflecting a potentially hawkish stance from the Federal Reserve. This sentiment has influenced investor reactions, particularly within cryptocurrency markets, leading to significant price fluctuations for Bitcoin and other major cryptocurrencies.

In conclusion, the recent statements from the Federal Reserve regarding interest rate policy have instigated notable volatility in cryptocurrency markets, particularly affecting Bitcoin and its peers. The implication of a slower reduction in rates for 2025 has instilled a sense of caution among investors, resulting in significant price drops across major cryptocurrencies. The situation highlights the intricate relationship between macroeconomic policy decisions and the performance of digital assets.

Original Source: www.dlnews.com

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