On December 18, the Federal Reserve announced a reduction in the base interest rate by 0.25%. However, Fed Chairman Jerome Powell noted that the pace of rate cuts may slow down in 2025, which weakened investor optimism. Additionally, Powell expressed doubts about the idea of creating a national reserve in Bitcoins, proposed by elected President Donald Trump, which also negatively impacted market sentiment.
-Against the backdrop of these events, the price of Bitcoin fell below $100,000, leading to the liquidation of trader positions amounting to about $1.2 billion in a short period. This decline also affected other cryptocurrencies such as Ethereum, BNB, XRP, and Cardano, which showed a decrease in value.
-Additional pressure on the market came from news about a possible halt in Bitcoin purchases by MicroStrategy and criticism of the idea of creating a Bitcoin reserve in the U.S. These factors increased uncertainty among investors and contributed to further declines in cryptocurrency prices.
-Thus, the combination of macroeconomic factors and statements from key financial institutions led to the current decline in the cryptocurrency market at the end of 2024.
