Jerome Powell's Hawkish Stance Slashes Altcoin Prices, Bitcoin Retreats to $100K

The Federal Reserve Chair Jerome Powell's recent comments have shaken sentiment across the digital asset space, with most altcoins suffering significant declines in the past 24 hours.

Federal Reserve Chair Jerome Powell’s recent comments have led to a downturn in the digital asset market, with most altcoins experiencing significant declines. Over the past 24 hours, Bitcoin (BTC) fell to the $100,000 price level, after facing a daily high of $105,302.37.

According to blockchain analytics platform Santiment, both the crypto and equities markets reacted negatively to the rate cuts announced by the Federal Open Market Committee (FOMC). However, the main concern arose not from the current cuts themselves, but from Powell’s announcement that 2025 will see only half the number of rate cuts anticipated earlier.

Lower interest rates are typically bullish for digital assets, as traditional investment options become less appealing. In such scenarios, high-volatility assets like Bitcoin tend to attract investors due to their higher potential for returns. However, Powell’s “hawkish” stance contrasted with market expectations, triggering widespread sell-offs.

Altcoins Faced Double-Digit Declines

Powell’s announcement had an adverse impact on the sector. While Bitcoin dropped 2.85% over 24 hours, altcoins experienced steeper declines. Ethereum (ETH) fell 4.7% to reach the $3,600 price range, XRP and Dogecoin (DOGE) plummeted 6.3% and 6.22%, respectively. The total cryptocurrency market cap dropped 3.44% to $3.5 trillion.

The Santiment report also highlighted the significant losses on altcoins:

Also read: Meme Coins Flounder Despite Bitcoin’s Bull Run: Investor Outlook

Oversold Assets May See Potential Rebound

Despite the bearish market sentiment, Santiment suggested that the market reaction may be exaggerated. Cryptocurrencies with the largest price declines, such as AVAX, LINK, and LTC, could present opportunities for investors looking to capitalize on the dip.

Market indicators show mixed signals. The daily Relative Strength Index (RSI) for non-Bitcoin and non-Ether assets sits at 50, indicating equilibrium between buyers and sellers. The slight upward trend in RSI hints at a potential rebound.

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