According to Cointelegraph's analysis, today's Bitcoin price drop may be closely related to the recent speech of Federal Reserve Chairman Powell. In a public speech in Dallas, Texas, Powell emphasized that "the economy is not sending any urgent signals of interest rate cuts at present", suggesting that the Fed is not in a hurry to take further interest rate cuts. Previously, the Fed had cut interest rates by 50 basis points and 25 basis points in September and November, respectively, and the market generally paid attention to the next interest rate decision on December 18.
Powell pointed out that "the strong economic performance we are seeing now allows us to take a more cautious approach to policy adjustments." He added that the future direction of interest rates will depend on the upcoming economic data and its impact on the market.
Powell's remarks triggered short-term market fluctuations, and the price of Bitcoin fell by about 2.79%, once hitting $86,979, but then recovered slightly. Investors need to pay attention to the potential impact of future data on the Fed's policy adjustments, especially at a critical moment before the end of the year.
