At the time of writing, the Bitcoin price is experiencing a serious and sudden decline, and the cryptocurrency community is wondering what caused the decline.
The reason for the decline is thought to be the hawkish statements of the FOMC following the FED’s interest rate decision today, as well as FED Chairman Jerome Powell’s ongoing speech about slowing down the pace of interest rate cuts.
In September, the FED’s dot plot graph expected four interest rate cuts in 2025, but with the data updated today, this number has decreased to two. In addition, the market is pricing in interest rates to remain unchanged in January. In addition, FED Chairman Jerome Powell’s answer to the question about the Strategic Bitcoin Reserve in the US may have contributed to the decline. Powell stated that the FED is not allowed to hold Bitcoin and is not willing to make a change in the laws on this issue.
Following the interest rate decision, the BTC price fell by approximately 3% and is trading at $101,800 at the time of writing. The decline in the last 24 hours exceeded 4%.
*This is not investment advice.
