Bitcoin dipped below $100,000 on Wednesday night, dropping 6% in 24 hours to trade at $99,0477, following comments from U.S. Federal Reserve Chair Jerome Powell.
Bitcoin fell below the $100,000 mark on Wednesday night, decreasing by 6% over the past 24 hours and trading at $99,0477, after U.S. Federal Reserve Chair Jerome Powell rejected the idea of creating a national Bitcoin reserve.
Powell stated that the central bank is “not looking for a law change” and is not permitted to hold Bitcoin. This caused a sharp correction after Bitcoin briefly surged to a new all-time high of $108,000 earlier this week.
The impact was felt across the market, with major altcoins also seeing significant losses. Ethereum (ETH) dropped by 6.5%, and XRP fell by 12.64%. The GMCI 30 index, which tracks the performance of top cryptocurrencies, declined by 7.18% in the past day.
Bitcoin's recent rally was fueled by comments from U.S. President-elect Donald Trump about creating a national Bitcoin reserve. Several states, including Texas and Florida, also saw efforts to build state-backed Bitcoin reserves, boosting market optimism.
However, Powell's comments were part of a broader economic picture that also included the U.S. Federal Reserve's decision to cut interest rates by 25 basis points on Wednesday and signaling fewer cuts in 2024, which contributed to the market's decline.
With ongoing uncertainty, many are closely watching how the market reacts to political shifts and economic changes in the coming months.
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