Bitcoin Falls Below $100K as Jerome Powell Speaks
A sudden market downturn saw Bitcoin slipping under the $100,000 threshold on December 18-19. This followed the Federal Reserve’s 25 basis point rate cut announcement and comments from Fed Chair Jerome Powell during a press briefing.
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A sudden market downturn saw Bitcoin slipping under the $100,000 threshold on December 18-19. This followed the Federal Reserve’s 25 basis point rate cut announcement and comments from Fed Chair Jerome Powell during a press briefing.
Over $780 million in trading positions were liquidated in the last 24 hours, CoinGlass reports. Speculation suggests that Jerome Powell’s comments on the potential for a strategic Bitcoin reserve may have fueled the crypto market’s decline.
BTC price performance around Jerome Powell’s speech Source: WhiteBIT
The idea of a Bitcoin reserve is being promoted by Republican Senator Cynthia Lummis and President-elect Donald Trump. Powell addressed the issue, clarifying that the Federal Reserve cannot legally hold Bitcoin and has no interest in pursuing any legislative changes to enable this.
Related: Draft Executive Order on Strategic BTC Reserve Finalized
So you know we We're not allowed to own Bitcoin. The Federal Reserve Bank says what we can own, and we're not looking for a law change. That's the kind of thing for Congress to consider, but we are not looking for a law change at the Fed,
stated Jerome Powell.
In its latest update, the Federal Reserve reaffirmed its 2% inflation target, highlighting its ongoing commitment to balancing economic growth and inflationary pressures.
Fed Chair Jerome Powell suggested a more cautious approach to policy adjustments, warning that acting too swiftly or aggressively in easing restrictions could stall progress in controlling inflation.
The crypto market’s recent decline may have been influenced by Powell’s hawkish stance. However, he also noted that moving too slowly or easing too little could hinder economic activity and job creation unnecessarily.
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