Why Did Crypto Crash Today? Jerome Powell’s Speech Spark Panic Selling | Airdrop Alert Pro

Fed yesterday Announced a 0.25% interest rate cutas expected. At a news conference announcing the rate cut, Fed Chairman Jerome Powell defended the decision and described it as an attempt to achieve a more balanced economic situation. However, he revealed that the group would take a cautious approach when considering further interest rate cuts. Yesterday, U.S. stocks and stocks cryptocurrency market Suffered a severe fall.

Fed rate cuts and inflation target: What you should know

Yesterday, the US federal funds rate was lowered to 4.5%. This is the third major adjustment this year. It was originally reduced to 5% on September 18th. On November 7, it was lowered for the second time to 4.75%.

Powell emphasized the organization’s commitment to supporting the country’s economy and job market during the press conference.

However, he stressed that the group had not decided on a strict rate adjustment plan and claimed that the possibility of further rate cuts depends on three key factors: new economic data, the economic outlook and economic and inflation risks.

At the beginning of this year, U.S. inflation was 3.1%. It hit an annual peak of 3.5% in March. Notably, it has been declining steadily from March to September. In September, it fell to an annual low of 2.4%. Since then, however, the rate has continued to rise. It reached 2.7% in November.

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Market Reaction: Stocks and Cryptocurrencies Plunge

On December 18, the day the Federal Reserve officially announced an interest rate cut, the cryptocurrency market fell by approximately 0.58%. As of early yesterday, the Bitcoin price was $106,080.05. As of the close, it fell to a minimum of $100,207.97, a sharp drop of 5.85%. Likewise, the S&P 500 also plunged more than 2.90% yesterday.

Bitcoin and cryptocurrencies take a hit after Fed cuts rates, with Bitcoin down 5.85% Bitcoin Price Prediction Find out what’s next for the market!

Altcoins face tougher challenges

As of December 18, the total market capitalization of the cryptocurrency market excluding BTC was $1.53T. At the close, it dropped to as low as $1.42T, a drop of 7.74%. In the past 24 hours, Ethereum is down more than 4.7%, XRP is down 6.8%, BNB is down 1.6%, Solana is down 3.3%, Dogecoin is down 6.2%, and Cardano is down 4.9%.

All in all, the Fed’s hawkish outlook points to long-term challenges for markets.

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