Today, December 19, 2024, the cryptocurrency market is facing heavy losses. Major coins such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP have all recorded significant declines in the past 24 hours. One of the main reasons for this drop is attributed to the recent interest rate cut meeting of the Federal Reserve (Fed).

Reasons for the Decline

In the recent conference, the Fed announced a new interest rate ceiling of 4.50%, down from the previous 4.75%. While this aligns with market expectations, the statements from Fed Chairman Jerome Powell have raised significant concerns within the cryptocurrency community.

Powell stated:

"We are not allowed to own Bitcoin and do not want to change the law."

This clearly indicates that the Fed has no intention of accumulating or supporting the accumulation of Bitcoin in the near future. Powell also emphasized that:

"This is an issue for Congress to consider, but at the Fed, we are not seeking a change in the law."

Along with this, the idea of building a "strategic Bitcoin reserve" by the Fed seems to have been dismissed. Instead, the U.S. central bank continues to keep its distance from holding digital assets, unlike the accumulation of traditional gold reserves.

This outlook may change after President-elect Donald Trump officially takes office, but for now, the Fed's tough stance has put heavy pressure on the cryptocurrency market.

Impact on Cryptocurrency Prices

Statements from Jerome Powell have triggered a major sell-off, causing the cryptocurrency market to plunge into the red. Major coins recorded significant declines:

Bitcoin (BTC): Down 6.5%, from $108,000 to below $100,000.

Ethereum (ETH): Lost 5.5% of its value.

XRP: Recorded the largest drop, 14.20%.

Solana (SOL): Down 9.45%.

Dogecoin (DOGE): Lost 11.5% of its value.

This depreciation has not only affected major coins but has also spread throughout the market, making investor sentiment more cautious.

Conclusion

The Fed's stance on cryptocurrency, along with strong statements from Jerome Powell, has posed a significant challenge to the market. Meanwhile, the likelihood of changing the stance of central banks will depend on the moves from the new administration in the near future.

For investors, the current phase may be a crucial time to reassess strategies and closely monitor movements from the global financial market.