Bitcoin drops to $101k as Fed's hawkish stance dampens risk appetite

From Investing.com
December 19, 2024 01:50 AM:

Bitcoin slipped on Thursday, dropping 2.6% to $101,153.0, as the Fed’s hawkish outlook dampened risk appetite. Powell stated the central bank won’t stockpile Bitcoin, causing further sentiment decline. The cryptocurrency briefly fell below $100,000 after hitting an all-time high of $108,244.9 on Tuesday.

The Fed cut rates by 25 basis points but signaled a slower pace for future cuts, reducing expectations to two rate cuts in 2025. This cautious stance and prolonged borrowing costs weighed on Bitcoin and broader risk assets, leading to steep declines on Wall Street.

Fed Chair Powell dismissed Bitcoin buying plans, stating it’s for Congress to consider. Doubts over a Strategic Bitcoin Reserve grew, as regulatory hurdles loom. Meanwhile, El Salvador scaled back Bitcoin’s national currency plan for a $1.4 billion IMF loan, marking a significant shift from President Bukele’s previous ambitions.

Altcoins followed Bitcoin’s decline after the Fed meeting, with most losing ground gained last week. Ethereum fell 4.7% to $3,684.62, while Binance Coin dropped 5.6% to $2.3701. Solana, Cardano, and Dogecoin also saw losses, with meme token Shiba Inu down 5.6%. Hong Kong approved four cryptocurrency exchanges to boost digital asset trading competitiveness.

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