“The Federal Reserve's 'Hardline Approach' Strikes Bitcoin, Leading to a Massive Sell-off in the Market”
Today (December 19, 2024), the entire cryptocurrency market has experienced a significant decline, with major assets such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP seeing substantial price corrections in the past 24 hours. This drop may be related to the recent policy statement from the Federal Reserve and Chairman Powell's remarks on cryptocurrencies.
In the latest minutes of the Federal Reserve's meeting, it was announced that the upper limit for interest rates would be lowered from 4.75% to 4.50%, in line with market expectations. However, more noteworthy is Chairman Jerome Powell's direct commentary on cryptocurrencies. Powell clearly stated that the Federal Reserve will not support large-scale Bitcoin holdings and reiterated, “We do not allow Bitcoin ownership, nor do we intend to change existing laws.” This statement has evidently had a significant impact on market sentiment, especially for those supporting the idea of a “strategic Bitcoin reserve.”
Powell's remarks caused a negative reaction in the market, with the world's largest cryptocurrency Bitcoin (BTC) briefly falling below the $100,000 mark, declining over 6.5%; assets like Ethereum (ETH), Solana (SOL), and XRP followed closely, with declines of 5.5%, 9.45%, and 14.20%, respectively.
This sharp decline in the cryptocurrency market indicates unstable investor sentiment, particularly following Powell's tough statements, leading to a more cautious market outlook. Investors should remain vigilant regarding the future trends in the crypto market and pay attention to any further policy changes from the Federal Reserve.
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