Bitcoin loses $100k as markets continue to slide in reaction to Fed’s slower pace for 2025
In addition to Jerome Powell's recent remarks on the US interest rate policy, a potential government shutdown is in play.
Bitcoin ( BTC ) lost the $100,000 threshold after registering a 6.4% drawdown in the past 24 hours, priced at $97,000 as of press time.
Bitcoin fell to a low of $96,233 before attempting a recovery. As a result, crypto derivatives registered nearly $1.2 billion in liquidations over the period, based on CoinGlass data .
Sharper corrections among major altcoins followed BTC’s slump, as the total crypto market cap fell 9% in the same period to $3.63 trillion.
Ethereum ( ETH ) was trading at $3,372 after shedding 10% over the past 24 hours, while Solana ( SOL ) registered an identical crash to a low of $187.
Chainlink ( LINK ) and Dogecoin ( DOGE ) had the worst performances among the 20 largest cryptos by market cap, with 17.3% and 18% corrections, respectively.
The crashes are likely an aftermath of Fed Chairman Jerome Powell’s statement about the US interest rate policy.
On Dec. 18, Powell signaled that the policy rate could be more cautious following the recent cuts, which analysts see as two rate cuts next year. Additionally, the Fed Chair noted that potential cuts will depend on market data and will take time for inflation to reach 2%.
Despite the market’s uncertainty toward the US economy, Powell displayed optimism in his speech yesterday:
“It’s in a really good place, our policy is in a really good place (and) I expect another good year next year.”
Potential shutdown
In addition to the uneasiness created by Powell’s recent remarks, the US Congress faces a looming partial government shutdown, with only two days remaining to pass a spending bill.
President-elect Donald Trump has rejected a bipartisan stopgap measure intended to extend government funding through Mar. 14, 2025, insisting that lawmakers first address the national debt ceiling.
In response, congressional Republicans are developing an alternative plan that aligns with Trump’s demands to secure sufficient House and Senate support.
Without legislative action, a government shutdown, set to begin on Dec. 21, would disrupt numerous services and delay federal employee paychecks.
Trump has also proposed abolishing the debt limit entirely, a suggestion likely to be criticized due to concerns of fiscal irresponsibility.
Bitcoin Market Data
At the time of press 8:06 pm UTC on Dec. 19, 2024, Bitcoin is ranked #1 by market cap and the price is down 5.64% over the past 24 hours. Bitcoin has a market capitalization of $1.91 trillion with a 24-hour trading volume of $105.71 billion. Learn more about Bitcoin ›
Bitcoin
8:06 pm UTC on Dec. 19, 2024$96,568.36
-5.64%Crypto Market Summary
At the time of press 8:06 pm UTC on Dec. 19, 2024, the total crypto market is valued at at $3.3 trillion with a 24-hour volume of $296.39 billion. Bitcoin dominance is currently at 57.96%. Learn more about the crypto market ›
Mentioned in this article
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Is the Ethereum Price Crash Over? Here’s Where Its Headed Next
ETH's strong bounce from its 200DMA and potential Doji candle formation suggest the worst of the downside could be over.
Crypto Crash Hits Cardano Hard – Can ADA Hold $1 and Start 2025 Strong?
At intra-day lows, ADA had dumped over 40% since its recent highs. But the worst might already be over, and 2025 could bring new highs.
If the Bitcoin Reserve Bill is passed, it may bring an end to the cryptocurrency's four-year boom-bust cycle.
Bitcoin's price trend will no longer be as influenced by internal mechanisms such as halving, but rather more affected by external factors such as institutional adoption and geopolitical events.