Bitcoin falls to $97k due to Fed's hawkish stance and profit-taking, altcoins also drop

From Investing.com

December 20, 2024 01:05 AM:

Bitcoin fell 3.7% to $97,002.0 amidst Fed’s hawkish stance and profit-taking after hitting an all-time high of $108,244.9. The central bank’s plan for two rate cuts in 2025, instead of four, intensified the sell-off, making cryptocurrencies less attractive. Fed Chair Powell ruled out a Strategic Bitcoin Reserve, casting doubts on the concept.

El Salvador plans to buy more Bitcoin despite IMF’s warning. President Bukele agreed to reduce Bitcoin’s role in the economy for a $1.4 billion loan. The IMF advised caution due to El Salvador’s isolation from global debt markets. Despite the risks, the country’s Bitcoin holdings have increased in value.

Altcoins plummeted as Bitcoin declined, with many losing previous gains. Ether dropped 15% in four days, while other major cryptocurrencies like  and  also saw significant losses. Meme token  was hit particularly hard, falling 11.2%. Traders are cautious due to the Fed’s hawkish stance and market uncertainties.

Read more at Investing.com: falls for 3rd straight day to $97k on hawkish Fed outlook By Investing.com