Bitcoin loses $100k as markets continue to slide in reaction to Fed’s slower pace for 2025

Bitcoin (BTC) misplaced the $100,000 threshold after registering a 6.4% drawdown previously 24 hours, priced at $97,000 as of press time.

Bitcoin fell to a low of $96,233 earlier than trying a restoration. In consequence, crypto derivatives registered almost $1.2 billion in liquidations over the interval, primarily based on CoinGlass information.

Sharper corrections amongst main altcoins adopted BTC’s hunch, as the entire crypto market cap fell 9% in the identical interval to $3.63 trillion.

Ethereum (ETH) was buying and selling at $3,372 after shedding 10% over the previous 24 hours, whereas Solana (SOL) registered an an identical crash to a low of $187.

Chainlink (LINK) and Dogecoin (DOGE) had the worst performances among the many 20 largest cryptos by market cap, with 17.3% and 18% corrections, respectively.

The crashes are probably an aftermath of Fed Chairman Jerome Powell’s assertion in regards to the US rate of interest coverage.

On Dec. 18, Powell signaled that the coverage fee might be extra cautious following the latest cuts, which analysts see as two fee cuts subsequent 12 months. Moreover, the Fed Chair famous that potential cuts will rely on market information and can take time for inflation to achieve 2%.

Regardless of the market’s uncertainty towards the US economic system, Powell displayed optimism in his speech yesterday:

“It’s in a very good place, our coverage is in a very good place (and) I anticipate one other good 12 months subsequent 12 months.”

Potential shutdown

Along with the uneasiness created by Powell’s latest remarks, the US Congress faces a looming partial authorities shutdown, with solely two days remaining to go a spending invoice.

President-elect Donald Trump has rejected a bipartisan stopgap measure meant to increase authorities funding by Mar. 14, 2025, insisting that lawmakers first deal with the nationwide debt ceiling.

In response, congressional Republicans are growing another plan that aligns with Trump’s calls for to safe enough Home and Senate assist. 

With out legislative motion, a authorities shutdown, set to start on Dec. 21, would disrupt quite a few companies and delay federal worker paychecks. 

Trump has additionally proposed abolishing the debt restrict totally, a suggestion more likely to be criticized resulting from issues of fiscal irresponsibility.

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