Bitcoin briefly falls below $100,000 level after Powell's remarks on Fed's stance and rate cuts
Bitcoin fell nearly 3% on Thursday after the U.S. Federal Reserve signaled it would slow the pace of rate cuts in 2025. The cryptocurrency briefly dipped below the $100,000 mark, weighed down by Federal Reserve Chair Jerome Powell’s hawkish tone and comments on the potential of a Bitcoin reserve.
While the Fed announced a widely expected 25-basis-point rate cut, its forecast of only two quarter-point reductions in 2025 was lower than the three or four cuts anticipated by markets. This reduced easing projection raised concerns among investors.
Additionally, Powell stated that the U.S. Federal Reserve had no interest in being involved in efforts to stockpile large amounts of Bitcoin. «We're not allowed to own Bitcoin,» Powell said during a press conference. «That's the kind of thing for Congress to consider, but we are not looking for a law change at the Fed.»
Powell's remarks, alongside the Fed's cautious stance, dampened investor sentiment, causing Bitcoin's value to fall. The cryptocurrency had been rallying in recent months due to hopes of a more hands-off government approach to digital assets.
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