Bitcoin pulls back from ATH – Will the Fed weigh on BTC further?

Cryptos | 12/18/2024 12:31:27 GMT

Bitcoin falls from 108k to 104.5k.

BTC pulls back as Polymarket BTC strategic reserve odds ease.

The Fed is expected to cut rates by 25 bps.

A more hawkish-sounding Fed could weigh on BTC near near-term.

Where next for BTC?

After rising to an all-time high of 108K, Bitcoin is retreating as the odds ease with the Bitcoin Strategic Reserve. Attention is now on the Federal Reserve interest rate decision.

Bitcoin is down 4% at the time of writing, trading at 104.5k—a 3.5k correction that could be considered healthy given the 14k rally over the past 7 days. According to Coinglass, Bitcoin’s market capitalization has eased to $2.06 trillion, and its dominance over altcoins is at 54%.

The correction in Bitcoin has also sparked a selloff in altcoins. Ethereum is down 3% at 3880, XRP has dropped 4.5% and Solana is struggling at $216. Deeper losses can be seen in ADA, TRX, SHIB, TON, and XLM. The cumulative crypto market capitalization rose to almost $4 trillion yesterday but has since dropped $150 billion to just under $3.850 trillion today.