Big news!!! Did Powell's hawkish speech trigger Bitcoin's fall below $100,000 and $780 million liquidation?
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The Fed's hawkish shift hit the market hard, and Bitcoin fell below $100,000
On Wednesday, the price of Bitcoin fell to $98,839, a recent low. The sharp drop stemmed from the Fed's announcement of a 2025 easing policy reduction plan, which caused a sudden change in market sentiment.
Fed policy shock: The market was caught off guard
Interest rate adjustment is inconsistent with market expectations
The Fed cut interest rates by 25 basis points as expected, but the updated dot plot shows that the future may increase interest rates by 50 basis points, while the market had expected a 100 basis point rate cut.
The news caused market panic, causing 10-year Treasury yields and the US dollar to soar, while stocks and cryptocurrencies suffered heavy losses.
Liquidation scale expands
In the past 24 hours, the scale of liquidation in the crypto market reached $780 million, and investors were forced to close their positions, further exacerbating the downward trend.
Fed Chairman Powell likened the current market decision to "driving in the dark", calling on investors to remain patient and cautious.
Bitcoin rebounded from the bottom, and altcoins fell across the board
Bitcoin rebounded but is still under pressure
BTC rebounded quickly after falling below $100,000, and the current price has risen to $101,393, but it still faces strong resistance.
Altcoins suffered a sharp setback
Ethereum fell 6.5%, XRP fell 12.64%, and the GMCI 30 index of the top 30 cryptocurrencies in the crypto market fell 7.18%.
Trump's policies and the uncertainty of the future of the market
Bitcoin reserves boost confidence
President-elect Trump promised to establish a national Bitcoin reserve, and some states such as Texas and Florida have begun to legislate. This move has alleviated market pessimism to a certain extent.
Arthur Hayes warned that the market's optimistic expectations for Trump's policies are too eager.
He expects a sell-off around the inauguration in January as investors realize that it will take longer for policies to be implemented.
The current market is volatile, and macro policies and short-term sentiment have a significant impact on prices. It will take time to see whether the Bitcoin and crypto markets can hold their ground before the policy benefits are realized. During this period, it is particularly important to rationally judge risks and avoid chasing ups and downs.
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