Bitcoin (BTC) fell to a low of $100,300 after the Fed Chairman Jerome Powell's hawkish comments during the Federal Open Market Committee (FOMC) meeting.

The market declined despite expectations that interest rates in the US would drop by 25 basis points, bringing the rate down to 4.5% to 4.75%.

According to data from CryptoSlate, Bitcoin was trading at $100,740 at the time of the press release, down 5.7% in the past 24 hours.

The cryptocurrency market in general also suffered similar losses, with Ethereum (ETH) down 6.8% in the past day to $3,697 at the time of the press release, while BNB and Solana (SOL) fell 4.6% and 8.1%, respectively.

Dogecoin (DOGE) recorded the worst performance in the top 10 after an 11% adjustment that lowered its price to a low of $0.348.

The US stock market also reacted negatively to Powell's statements. The S&P 500 closed down 1.55%, while the Nasdaq 100 dropped 2%.

Coinbase's COIN stock closed down 6.6%, while MicroStrategy's MSTR adjusted down 5.7%.

Slower pace in 2025

Powell hinted that the current policy interest rates could be more cautious after recent cuts, adding that the decision to slow down interest rate cuts reflects higher inflation expectations and considerable uncertainty ahead.

In addition, he noted that any possibility of interest rate cuts in 2025 would depend on market data next year.

The London Stock Exchange revealed that future US interest rates are pricing in only two interest rate cuts next year. Meanwhile, the futures interest market currently expects a 37 basis point cut in 2025, down from a previous expectation of 49 basis points.

In addition, the odds in the prediction market Kalshi are 90% against any interest rate cuts in January 2025.

However, Powell stated that he remains optimistic about next year and added:

"We are in a really good position, our policy is in a really good place (and) I expect another good year next year."

Not allowed to own Bitcoin

The Fed Chairman was also asked about the growing interest in the US establishing a Strategic Bitcoin Reserve Fund. He responded that the Fed is not allowed to own Bitcoin and that this is an issue Congress needs to consider.

Powell then added:

"But we do not expect a change in legislation at the Fed."

He did not comment further on the matter.

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