$BTC Last week, the cryptocurrency market demonstrated high volatility against the backdrop of significant macroeconomic events and political statements. Bitcoin trading occurred in a wide range of $92,232 — $108,353, with the first cryptocurrency losing 5.74% since the beginning of the week, trading at $98,475. Ethereum (ETH) lost 12.13% during the same period, falling to $3,480.

The week started positively: on December 16, Bitcoin rose by 1.53% to $106,158, and on Tuesday reached $108,353. The market was supported by a statement from elected President Donald Trump about creating a strategic reserve of Bitcoin in the USA, which was perceived by investors as an important step towards the recognition of cryptocurrency at the state level. On Wednesday, ahead of the Federal Reserve meeting, profit-taking began. This was expected.

The turning point was the Federal Reserve meeting on December 18. Despite the anticipated rate cut of 0.25%, Jerome Powell's tough rhetoric that the regulator does not consider digital assets as a reserve instrument, along with a revision of the inflation forecast and the number of rate cuts in 2025, triggered massive sell-offs. In one day, long positions worth $576 million were liquidated.