The Bitcoin price has sharply fallen, prompting questions from the crypto community about the reasons for this drop.
Price Drop and Community Reaction
Currently, the Bitcoin price has dropped approximately 3% and is trading at $101,800. The decline in the last 24 hours has exceeded 4%.
Impact of FOMC Statements
The price decline is attributed to the hawkish statements of the Federal Open Market Committee following the FED's interest rate decision, as well as FED Chairman Jerome Powell's ongoing speech about slowing down the pace of interest rate cuts. In September, the FED's dot plot graph expected four interest rate cuts in 2025, but updated data now reduces this number to two. Additionally, the market is pricing in unchanged interest rates for January.
FED's Response on Strategic Bitcoin Reserve
Chairman Jerome Powell's response regarding the US Strategic Bitcoin Reserve may also have contributed to the decline. Powell stated that the FED is not allowed to hold Bitcoin and is not willing to change the laws regarding this matter.
The current situation in the Bitcoin market is influenced by a range of macroeconomic factors and monetary policy statements, putting pressure on the cryptocurrency's price.
