Bitcoin, XRP, Dogecoin Drop Rapidly After Fed Rate Cut
Bitcoin fell after Federal Reserve Chairman Jerome Powell said the central bank will cut interest rates at a slower pace in the new year.
Bitcoin and other major assets like Ethereum, XRP and Dogecoin fell rapidly after Federal Reserve Chairman Jerome Powell spoke and announced an expected interest rate cut. The move appeared to push investors away from “risky” assets like cryptocurrencies and U.S. stocks after the central bank announced it would not cut interest rates sharply in 2025.
The largest digital asset by market cap is now trading at $101,430 after falling following the Fed press conference. The asset has fallen about 5% in the past 24 hours, falling sharply after hitting an all-time high above $108,000 early Tuesday.
XRP price fell 10% on the day, adding to earlier losses after Tuesday’s rally, while Dogecoin price fell 9% as it slipped to $0.363 — the lowest level seen in a month for the top meme coin.
The Federal Reserve cut interest rates again on Wednesday by 25 basis points. But Powell said the bank “can therefore be more cautious as we consider further adjustments to interest rates.” Stocks also fell on the news as traders took a cautious approach.
