Bitcoin (BTC) Dips Below $100,000 as Market Uncertainty Grips Investors

The world's leading cryptocurrency, Bitcoin (BTC), experienced significant volatility following the Federal Reserve's (Fed's) latest monetary policy announcement

Bitcoin (BTC) price dropped to $98,760 on Wednesday evening following the Federal Reserve's latest monetary policy announcement, briefly testing levels below the psychological $100,000 mark before staging a recovery.

The second cryptocurrency by market capitalization dropped by 5.6% during Wednesday's session, testing support below $100,000. This marks the largest single-day drop since August 5, when the price declined by 7%, hitting a low of $49,000. Today (Thursday, December 19, 2024), Bitcoin also tested levels below the psychological support of $100,000. However, at the time of writing, it has modestly rebounded and is trading at $101,600 on Binance.

Bitcoin's trajectory has been significantly influenced by political developments, with a 50% surge following the November presidential election. The president-elect's pro-crypto stance and proposals for a national Bitcoin reserve have fundamentally altered market sentiment, though regulatory uncertainties persist.

Over the past 24 hours, more than $661 million in leveraged long positions have been liquidated in the cryptocurrency market, according to Coinglass data. The majority of these liquidations were tied to Bitcoin ($110 million) and Ethereum ($109 million).

Bitcoin's decline fueled a broader depreciation across the altcoin market. Alongside the oldest cryptocurrency, Ethereum also saw significant losses, dropping 4.4%, along with XRP (5.4%), Solana (2.5%), and Dogecoin (5.6%).

The total market capitalization shrank to $3.7 trillion, with Bitcoin accounting for over $2 trillion of that value.