Cryptocurrency plummets as Fed does not want to hold Bitcoin

The Fed Chair stated that they do not want to build a Bitcoin reserve, causing the cryptocurrency to drop more than 6% below $100,000, with many smaller cryptocurrencies experiencing significant declines.

After about three days hovering around $105,000, having at one point set a record of over $108,268 per unit, last night Bitcoin (BTC) plunged nearly back to $104,000.

By around 9:15 AM, the $100,000 mark was broken, and Bitcoin fell to around $99,500 per unit. This is the lowest level in the past 7 days and represents a decrease of more than 6% compared to the same period the previous day.

Smaller market capitalization cryptocurrencies also saw significant price drops. Ether lost more than 6% in market value. XRP, Solana, Dogecoin, ADA, and LTC dropped nearly 10%.

The market fell as the Federal Reserve (Fed) signaled a slowdown in monetary easing next year after cutting interest rates by another 0.25% (or 25 basis points). Previously, investors had anticipated a similar rate cut, so they focused on the monetary policy statement and the Fed's press conference for clues about future policy direction.

"The economy is still growing steadily. The unemployment rate is low, and inflation is rising moderately," the Federal Open Market Committee (FOMC) of the Fed remarked in a statement. They indicated that they will carefully consider upcoming data, both in terms of outlook and risks, to make decisions on interest rates.$BTC