Bitcoin touched $98,760 in a sharp downturn that erased nearly $10,000 from its recent all-time high (ATH). The movement coincided with a broader sell-off in risk assets, as market participants adjusted their positions following the Fed's hawkish guidance.
The cryptocurrency market's reaction mirrors the complex interplay between monetary policy and digital asset valuations. While the Fed delivered its third consecutive rate cut, the central bank's cautious stance on future reductions triggered a reassessment of risk positions across multiple asset classes.
“In support of its goals, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4-1/4 to 4-1/2 percent,” the Fed commented in the official statement.
As a result, Bitcoin fell by 5.6% during Wednesday's session, testing levels below the $100,000 mark. This marked the largest single-day drop since August 5, when the price declined by 7%, hitting a low of $49,000. Today (Thursday, December 19, 2024), Bitcoin also tested levels below the psychological support of $100,000. However, at the time of writing, it has modestly rebounded and is trading at $101,600 on Binance.#BinanceAlphaAlert
