Bitcoin ($BTC) has fallen sharply in the last 24 hours, losing over $5,000 and dropping below the $100,000 mark.

Key factors contributing to this decline include:

1. The monetary policy of the Federal Reserve of the United States

  • Interest rate decision: The Federal Reserve (Fed) has cut interest rates by 0.25%, bringing the federal funds rate down to 4.25% - 4.5%.

  • Statement from Fed Chair Jerome Powell: Powell stated that the Fed will slow the pace of interest rate cuts in 2025, promoting caution in the market.

2. Statement on Bitcoin ownership

  • Fed Chair Powell emphasized that the Fed does not own and has no intention of owning Bitcoin. This reduces expectations for Bitcoin's adoption in traditional financial systems.

3. Market sentiment and investor behavior

  • The uncertainty surrounding monetary policy and the future of Bitcoin in traditional finance has driven investors to sell off stocks, increasing downward pressure on Bitcoin.

Detailed analysis:

The impact of monetary policy

Typically, interest rate cuts support riskier assets like Bitcoin. However, the Fed's intention to slow down future interest rate cuts has raised concerns about economic prospects, causing investors to adopt a more cautious approach.

The Fed's view on Bitcoin

The Fed's clear refusal of Bitcoin ownership and the lack of legislative change to integrate Bitcoin into the financial system have weakened hopes for widespread acceptance by institutions. This has negatively impacted the value of Bitcoin.

Market sentiment

The combination of ambiguous monetary policy and the Fed's stance on Bitcoin has created anxiety in the market. This uncertainty has prompted investors to sell Bitcoin to mitigate risk, increasing its downward pressure.

Conclusion:

The sharp decline of Bitcoin in the past 24 hours is mainly due to the Fed's monetary policy adjustments and Chair Powell's statements regarding Bitcoin ownership. Combined with investor anxiety and sell-off behavior, these factors have led to significant downward pressure on the value of Bitcoin.

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