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.”

Bitcoin and Ethereum encountered a downturn after Federal Reserve Chairman Jerome Powell stated in a recent speech that the Fed is not currently considering Bitcoin and is barred from owning it.

On Monday, the Federal Reserve announced a 25-basis-point cut in the federal funds rate, bringing it to a range of 4.25%–4.5%. Following the rate cut, Chairman Powell delivered a speech, stating, “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 questioned about Bitcoin reserves, Powell stated, “We aren’t permitted to own Bitcoin. We’re not seeking a lot of change. That’s the kind of thing for Congress to consider.”

Bitcoin fell below $100,000 as a result of Powell’s hawkish speech, with a 5% decrease 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, both Bitcoin and Ethereum experienced a sharp dip. At the time of writing, Bitcoin is trading down by 4.23% over the past 24 hours, currently priced at $100,671 after hitting an all-time high of $108,239 on December 17. Bitcoin’s market cap also decreased 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 24 hours, 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 touched upon the labor market, stating that while it is cooling, the Fed does not believe further cooling is necessary to bring inflation down. He highlighted that labor market conditions are still solid, albeit less tight than in 2019, and noted that the unemployment rate has increased slightly but remains low.

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