Despite the US Fed’s anticipated reduction of the key interest rates by 25 basis points, remarks made by Jerome Powell, the central bank’s Chair, have had a significant negative impact on the entire crypto market. Powell warned that the rate cuts for 2025 may be fewer than previously expected, after the three consecutive cuts in 2024, and also stated that the US is not allowed to own bitcoin, contradicting Donald Trump’s promise to explore adding BTC to the country’s balance sheet.
These comments led to a violent decline in the prices of riskier assets such as cryptocurrencies, with Bitcoin falling from over $105,000 to under $99,000 for the first time since December 11. Many altcoins, including XRP, DOGE, AVAX, PEPE, LTC, and LINK, have also been severely impacted. In a recent tweet, Santiment highlighted the last four altcoins as potential beneficiaries if the Fed-induced crash is found to be a market overreaction.
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