Fed’s Anti-Bitcoin Stance Triggers Major Crypto Market Sell-off
Today, December 19, 2024, the entire cryptocurrency market is experiencing significant losses, with major cryptocurrencies such as Bitcoin (BTC), Solana (SOL), Ethereum (ETH), and XRP seeing significant price drops over the past 24 hours . One potential reason for this decline is the recent Fed rate cut meeting.
Reasons behind cryptocurrency market decline
The Fed announced during the meeting interest rate The cap is 4.50%, in line with expectations, compared with the previous rate of 4.75%.
Jerome Powell makes a bold decision statement Cryptocurrencies have had a significant impact on the entire market. Powell noted in a statement that we are not allowed to own Bitcoin and have no intention of changing the law.
This statement from the Fed Chairman shows that the Fed has no interest or intention to support a situation where the government accumulates large amounts of Bitcoin. Regarding the legal issues surrounding Bitcoin ownership, Powell said, “This is something that Congress needs to consider, but we are not seeking the Fed to change the law.”
The idea of creating a so-called “strategic Bitcoin reserve” appears to be failing, as the Federal Reserve has no intention of participating in such an initiative until President-elect Donald Trump takes office. This suggests central banks are moving away from holding large amounts of Bitcoin, unlike gold reserves.
Fed meeting affects cryptocurrency prices
Powell’s comments led to a sharp decline in the overall economy cryptocurrency market. Bitcoin (BTC), the world’s largest cryptocurrency, fell more than 6.5%, falling below $100,000 after hitting the $108,000 mark.
Meanwhile, the prices of other assets such as Ethereum (ETH), XRP, Solana (SOL) and Dogecoin (DOGE) fell by 5.5%, 14.20%, 9.45% and 11.5% respectively. Furthermore, significant price declines in the cryptocurrency market occurred following Powell’s statement.