Bitcoin drops sharply after the Fed's decision and a mass collapse in cryptocurrency prices

December 18, 2024

The US Federal Reserve cut interest rates by 25 basis points, to 4.5% from 4.75%. It also announced its future predictions for interest rates in the coming years.

According to the "Dot Plot" data issued by the Federal Reserve, interest rates are expected to be cut by 50 basis points in 2025, which means only two cuts compared to previous expectations that indicated a 100 basis point cut for the same year.

In 2026, the Federal Reserve expects to hold interest rates at 3.5% instead of cutting them to 3%, as stated in previous "Dot Plot" expectations. As for 2027, interest rates are expected to be cut to 3%, which is 25 basis points higher than previous expectations.

In the long term, expectations predict interest rates to stabilize at 3.0%.

Cryptocurrency prices after the Federal Reserve decision

At exactly 11:30 pm UAE time, the price of Bitcoin decreased by 3.07% to reach $103,384, while the price of Ethereum decreased by 2.46% to record $3,840, and the price of Solana decreased by 5.42% to reach $214.67, while Dogecoin reached $0.3837, recording a decrease of 3.79%, and the price of Shiba Inu decreased by 4.27% to $0.00002575.