Today, December 19, 2024, the cryptocurrency market is experiencing notable losses. Major cryptocurrencies like Bitcoin, Solana, Ethereum, and XRP are seeing significant price declines over the past 24 hours. A potential reason for this drop is the recent Federal Reserve rate cut meeting.
Crypto Market Decline
Bitcoin, the world’s largest cryptocurrency, dropped by over 6.5%, falling below $100,000 after reaching the $108,000 mark. Ethereum, XRP, Solana, and Dogecoin also saw price declines of 5.5%, 14.20%, 9.45%, and 11.5% respectively.
Fed's Role in Price Drops
During the conference, the Federal Reserve announced an interest rate ceiling of 4.50%, aligning with expectations, compared to the previous rate of 4.75%. Jerome Powell made a statement on cryptocurrency that significantly impacted the market. According to him, the Fed has no interest in supporting a scenario of Bitcoin accumulation or changing the laws in this area.
Future of Cryptocurrencies Amid Fed Decision
The idea of creating a 'Strategic Bitcoin Reserve' has not gained support from the Fed, indicating that central banks are distancing themselves from holding cryptocurrencies. This contrasts with their approach to gold as a reserve asset.
The Fed's policy changes are exerting significant pressure on the cryptocurrency market, causing fluctuations and price drops. Whether this is a temporary phenomenon or a long-term trend remains to be seen.
