Federal Reserve's Anti-Bitcoin Stance Triggers Massive Sell-off in Cryptocurrency Market
An Important Week for the Cryptocurrency Market: Economic Calendar and Federal Reserve Speeches
Today, December 19, 2024, the entire cryptocurrency market is experiencing significant losses, with major cryptocurrencies like Bitcoin (BTC), Solana (SOL), Ethereum (ETH), and XRP seeing sharp price declines in the past 24 hours. One potential reason for this drop is the recent Federal Reserve interest rate cut meeting.
Reasons Behind the Cryptocurrency Market Decline
In the Federal Reserve meeting minutes, the announcement of the interest rate ceiling was lowered from the previous 4.75% to 4.50%, which was in line with expectations.
Jerome Powell made bold statements regarding cryptocurrencies, having a significant impact on the entire market. In a statement, Powell pointed out that we do not allow ownership of Bitcoin and have no intention of changing the law.
This statement from the Federal Reserve Chair indicates that the U.S. central bank has no interest or intention to support a situation where the government holds large amounts of Bitcoin. Regarding the legal issues of Bitcoin ownership, Powell stated, "This is something Congress needs to consider, but we do not wish for the Federal Reserve to change the law."
The idea of establishing a so-called "strategic Bitcoin reserve" seems to have failed, as the Federal Reserve had no intention of participating in this initiative before President Donald Trump's election. This indicates that central banks are keeping their distance from holding large amounts of Bitcoin (unlike gold reserves).
Federal Reserve Meeting Impact on Cryptocurrency Prices
Powell's statements caused a significant overall decline in the cryptocurrency market, with the largest cryptocurrency, Bitcoin (BTC), dropping over 6.5%, at one point breaking the $108,000 mark and falling below $100,000.
Meanwhile, the prices of other assets like Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) fell by 5.5%, 14.20%, 9.45%, and 11.5%, respectively. Additionally, the sharp decline in cryptocurrency market prices occurred after Powell made his statement.
As for the next layout direction, I will lead everyone to aim for the lucrative opportunities in altcoins, especially those with great potential, with an expected space of over 10 times being no problem. If you want to make big money in a bull market, like and comment, and I will guide you through the entire bull market!
