Cryptocurrency plummets as Fed doesn't want to hold Bitcoin

Bitcoin price has recorded a sharp decline, falling below 100,000 USD, after the Chairman of the US Federal Reserve (Fed), Jerome Powell, announced that there is no intention to build Bitcoin reserves and the agency Owning Bitcoin is not allowed under the Federal Reserve Act. Since peaking near $108,000, Bitcoin has fallen more than 6%, to around $99,500, its lowest level in a week.

Other digital currencies were also negatively affected, with Ether falling more than 6% and many other small-cap cryptocurrencies such as XRP, Solona, ​​Dogecoin... falling nearly 10%. Although the Fed lowered interest rates by 0.25% in an effort to ease monetary policy, Powell's message of slower rate cuts in 2025 increased concerns in financial markets. This situation has led to a strong sell-off from investors, showing caution and instability in the cryptocurrency market.

In this context, many analysts are concerned that a stronger USD could create risks for Bitcoin and other digital assets, due to the impact of tightening global liquidity.