#binanceseason Santa Rally' MIA as Bitcoin Falls to Lowest Price in a Month
A Fed-sparked market rout continued in the cryptosphere, denting investors' hopes of a Santa Claus rally as Bitcoin sank further Monday.

The price of Bitcoin fell below $93,000 Monday, hitting its lowest price in nearly a month—since November 26—as a so-called Santa Claus rally failed to materialize and the crypto charts looked as red as the holiday icon's suit.

Less than a week ago, the leading cryptocurrency traded hands above $108,000, rising to a record price as the holiday season approached. But in a Scrooge-like twist, a hawkish Federal Reserve dented the asset’s price by voicing a more cautious approach to rate cuts next year.

Lower interest rates tend to be favorable for Bitcoin and other “risk assets” like equities. As borrowing becomes cheaper, investors typically seek risker assets that could produce better returns than the payouts that come with holding safer ones like cash and U.S. Treasuries.

When the Fed lowered its benchmark interest rate by 25 basis points to a target range of 4.25% to 4.5% last week, policymakers signaled there would be fewer rate cuts next year than investors had previously anticipated. Among Fed officials, a majority foresaw two rate cuts next year, down from four rate cuts projected by the U.S. central bank’s officials in September.

Inflation has slowed drastically since peaking at 9.1% year-over-year in June 2022, per the U.S. Bureau of Labor Statistics’ Consumer Price Index. Clocking in at a 2.7% increase in the 12 months through November, the latest report, however, showed inflation still running above the Fed’s 2% target.

Since the Fed began cutting interest rates in September, a 100 basis-point reduction in the U.S. central bank’s benchmark rate has given policymakers more wiggle room, Powell explained.