Outside Source
- Bitcoin dropped to below $100,500 as S&P 500 slipped 2.5%
- The Fed signalled a 50 bps rate cut for 2025, taming risk appetite.
Bitcoin price fell nearly 6% to below $100,500 on December 18, 2024 as the broader market traded lower on the latest US Federal Reserve interest rates decision.
BTC drops amid Fed news
Following the Federal Reserve’s 25 bps interest rate cut and Fed Chair Jerome Powell’s speech, stocks gave up gains. Bitcoin led the crypto market’s negative reaction, with investors likely looking at commentary that the central bank will not cut its benchmark rate as aggressively as anticipated in the next 12 months.
Analysts pointed to Powell’s remarks as a hawkish stance for the Fed and the end of the easing cycle. The S&P 500 saw a 2.5% drawdown.
2.5% drawdown for the S&P500 and boomers are in shambles pic.twitter.com/r3Vhjl4C8I
— K A L E O (@CryptoKaleo) December 18, 2024
BTC price fell sharply to further move away from the recent all-time high above $108. Trading near $100k puts Bitcoin at the key zone where bears have previously dominated bulls.
“The US Fed has taken the expected action of cutting interest rates by 25bps. However, the cuts came with a hint of cautiousness by Jerome Powell. His hinting of only a 50 bps cut through 2025 is only half of what the public had been expecting prior to today’s FOMC meeting,” market intelligence platform Santiment wrote on X.
“Under these conditions, we are seeing big drops throughout multiple sectors. With Bitcoin and crypto being closely tied to the S&P 500 and other equities markets, prices have retraced on this news,” the platform added.
Apart from BTC, other top coins fell. ETH dipped 6% to $3,712 and XRP crashed 10% to $2.36.
This article first appeared at CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison
