๐๐ถ๐๐ฐ๐ผ๐ถ๐ปโ๐ ๐ฃ๐ฟ๐ถ๐ฐ๐ฒ ๐๐ฟ๐ผ๐ฝ: ๐ช๐ต๐ฎ๐โ๐ ๐๐ฒ๐ต๐ถ๐ป๐ฑ ๐๐?
Bitcoin recently fell below $100,000, its biggest drop in over three months. What caused this? The Federal Reserve's latest comments and a broader market selloff played a big role.
Why Did Bitcoin Drop?
Bitcoin had been soaring, reaching $108,316 earlier this week, but the Fedโs hawkish tone and fewer expected rate cuts in 2025 caused a pullback. When interest rate cuts slow down, investors tend to move away from riskier assets like Bitcoin, leading to a 5% drop in its price.
Powellโs Take on a Bitcoin Reserve
Fed Chair Jerome Powell was asked about creating a U.S. Bitcoin reserve, a proposal from President-elect Trump. Powell confirmed that the Fed isnโt allowed to hold Bitcoin and any change would need Congress. For now, itโs off the table.
The Market Reacts
Bitcoin-related stocks took a hit too. MicroStrategy fell 9.5%, while Bitcoin miners like MARA Holdings and Riot Platforms dropped 12-14%. The marketโs volatility is clear, and Bitcoinโs price is closely linked to these shifts.
Whatโs Next for Bitcoin?
Despite the recent drop, Bitcoin is still up 50% since Trumpโs election. While uncertainty remains, the push for deregulation and potential regulatory changes could continue to fuel optimism. Bitcoinโs volatility is here to stay, but its future remains promising.
Your Thoughts?
Do you think a U.S. Bitcoin reserve is a good idea, or is the Fedโs stance more practical? Share your thoughts in the comments or join the conversation on social media!
