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20 Dec 2024

Bitcoin drops 4.6% following Fed rate decision and outlook

Despite being anticipated, the market reacted negatively due to Fed Chair Jerome Powell’s comments suggesting fewer rate cuts than expected in 2025 and an increased inflation forecast of 2.5% for the same year.



Bitcoin and the broader crypto market experienced a sell-off following the Federal Reserve’s announcement of a 25 basis point rate cut to its benchmark policy rate. While the rate cut was anticipated by many traders, the market reacted negatively to Fed chair Jerome Powell’s indication that fewer rate cuts than initially expected could take place in 2025. Following the announcement, Bitcoin’s price dropped by 4.6%, falling to $101,300, and Ether saw a 5.96% decline, dropping to $3,600.