Bitcoin and Ethereum are slipping back after Federal Reserve Chairman Jerome Powell stated in a recent speech that the Fed is not currently considering Bitcoin and is prohibited from owning it.
Yesterday, the Federal Reserve announced a 25-basis-point cut to the federal funds rate, lowering it to a range of 4.25%–4.5%. Following the rate cut, Chairman Powell gave a speech, saying, “The US economy is growing at a healthy 2.5% pace, unemployment is low, but the inflation forecast is higher, and there is uncertainty.”
Fed Chair Jerome Powell Avoids Bitcoin Reserve Talks:
When asked about Bitcoin reserves, Powell responded, “We aren’t allowed to own Bitcoin. We’re not looking for a lot of change. That’s the kind of thing for Congress to consider.”
Due to Powell’s hawkish speech, Bitcoin fell below $100,000, down 5% in 24 hours, and a large number of altcoins fell by more than 10%. The total amount of liquidation in 24 hours reached $709 million, and long orders were liquidated for $612 million. https://t.co/YQ6p9AZeYG
— Wu Blockchain (@WuBlockchain) December 19, 2024
Following Powell’s speech, Bitcoin and Ethereum experienced a steep dip. At the time of writing, Bitcoin has dropped by 4.23% in the past day, currently trading at $100,671 after reaching an all-time high of $108,239 on December 17. Bitcoin’s market cap also fell by 3.87% to $1.99 trillion, while its 24-hour trading volume surged by over 42% to $99.52 billion.
Ethereum, too, has felt the ripple effects. After a 5.10% dip in the past day, Ethereum is now trading at $3,659. Its market cap has decreased by 5.22% to $440.81 billion. However, Ethereum’s 24-hour trading volume has increased by 49.27% and currently stands at $52.45 billion.
Several other altcoins bore the brunt of Powell’s hawkish speech as they fell by more than 10%. The total amount of liquidation in 24 hours reached $709 million, and long orders were liquidated for $612 million.
Powell also commented on the labor market, stating that while it is cooling, the Fed does not believe further cooling is necessary to bring inflation down. He emphasized that labor market conditions remain solid, though less tight than in 2019, and noted that the unemployment rate has edged up but remains low.
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