Bitcoin’s price fell by 0.7% to $95,445.4 amidst Federal Reserve’s hawkish signals on interest rate cuts. The leading cryptocurrency dropped below $100,000 for the first time in days, reflecting broader caution in the market. Other cryptocurrencies exhibited mixed performance as liquidity concerns persist.

Bitcoin declined by 0.7% to $95,445.4 on Monday as macroeconomic pressures intensified following hawkish statements from the Federal Reserve. The leading cryptocurrency fell below the $100,000 threshold for the first time in several days, reflecting a broader trend of caution among investors who are reevaluating their holdings in light of the Fed’s indication of a slower pace for future interest rate cuts. Amid this backdrop, Bitcoin has experienced five days of price decreases within the last six days, contributing to a sense of unease in the crypto market.

The Federal Reserve’s shift towards a more hawkish monetary policy has caused uncertainty, particularly regarding speculative assets such as Bitcoin. This reevaluation of market positions came after the Federal Reserve predicted only two interest rate cuts for the upcoming year, a revision from prior expectations. Concurrently, U.S. President Donald Trump congratulated the cryptocurrency sector for reaching a record high exceeding $108,000 earlier in the previous week, coinciding with a period that attracted profit-taking activities among traders, which further contributed to Bitcoin’s recent downward trend.

In addition, President Trump has made significant nominations for positions concerning defense and cryptocurrency policy, appointing key figures who will influence the future landscape of digital currencies. Michael Kratsios is set to head the Office of Science and Technology Policy, while Lynne Parker will take the lead for the Presidential Council of Advisers for Science and Technology (PCAST). Meanwhile, Bo Hines will lead the newly formed Crypto Council, all reporting to David Sacks, who holds the title of “crypto czar.”

The broader cryptocurrency market displayed mixed results, with many altcoins reflecting Bitcoin’s downward movement. Ethereum, the second-largest cryptocurrency, dropped to $3,303.66, while the third-largest, XRP, fell by 1.9% to $2.1896. Notable gains were observed in Solana and Polygon, which increased by 1.9% and 1.2%, respectively, while Dogecoin saw a slight rise of 1.3%. Overall, liquidity concerns and the broader market sentiment continue to influence price movements across various digital assets.

The cryptocurrency market is significantly influenced by macroeconomic factors, including monetary policy changes from central banks like the Federal Reserve. Recent bearish sentiments within the market were triggered by the Fed’s decision to adopt a hawkish approach, indicating a slower pace for interest rate cuts, which impacts speculative investments like Bitcoin. With the increase in volatility, market participants are closely monitoring economic indicators and government policies that could affect the cryptocurrency landscape.

In summary, Bitcoin’s recent decline to $95,445.4 reflects broader market anxieties stemming from the Federal Reserve’s hawkish stance on interest rates. Despite celebrating record highs earlier in the week, the cryptocurrency has faced downward pressure from profit-taking and macroeconomic uncertainties. As President Trump prepares to make key appointments that may influence the crypto sector, investors continue to adjust their strategies in response to shifting market dynamics.

Original Source: www.investing.com

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