𝗕𝗶𝘁𝗰𝗼𝗶𝗻’𝘀 𝗣𝗿𝗶𝗰𝗲 𝗗𝗿𝗼𝗽: 𝗪𝗵𝗮𝘁’𝘀 𝗕𝗲𝗵𝗶𝗻𝗱 𝗜𝘁?
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 Fed’s 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.
Powell’s 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 isn’t allowed to hold Bitcoin and any change would need Congress. For now, it’s 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 market’s volatility is clear, and Bitcoin’s price is closely linked to these shifts.
What’s Next for Bitcoin?
Despite the recent drop, Bitcoin is still up 50% since Trump’s election. While uncertainty remains, the push for deregulation and potential regulatory changes could continue to fuel optimism. Bitcoin’s 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 Fed’s stance more practical? Share your thoughts in the comments or join the conversation on social media!