2024-12-21 16:27 |
Bitcoin experienced a sharp sell-off on Friday, plummeting 9% as broader investor caution towards risk assets took hold.
The cryptocurrency’s dramatic reversal highlights the sensitivity of digital assets to macroeconomic signals and market sentiment, amidst a broader atmosphere of unease across various asset classes.
Bitcoin traded at approximately $92,808.07 by 6:57 a.m. ET on Friday, a significant drop from its price of over $102,000 just 24 hours prior, according to Coin Metrics.
The cryptocurrency had only recently hit an all-time high above $108,000 earlier this week, before succumbing to a wave of aggressive selling.
This rapid shift underscores the inherent volatility of the cryptocurrency market.
The Fed’s ImpactThe Federal Reserve’s recent signals regarding a reduced number of interest rate cuts next year have rattled markets, triggering a pullback in risk assets.
This shift in monetary policy has also impacted equity markets and has filtered through to crypto assets.
With some markets already on edge due to the Fed’s outlook, some of the steam has come out of assets that have seen big gains this year.
Bitcoin, despite having more than doubled in price this year, was not immune to these effects.
The price gains were supported by factors such as the launch of spot exchange-traded funds and the election of Donald Trump, whose pro-crypto policies had helped propel Bitcoin to its latest record high.
Beyond BitcoinBitcoin’s sudden decline also dragged down other cryptocurrencies.
Ether was down around 15%, and XRP plunged 17% from 24 hours prior by 7:14 a.m. ET.
This broad decline highlights the interconnectedness of the crypto market and the vulnerability of digital assets to shifts in overall investor sentiment and broader market trends.
Furthermore, Tesla, which was another big beneficiary of Trump’s election, continued its post-election slide with shares falling on Friday in premarket trading.
Other big names like Nvidia were also lower during the session.
Fed’s position on Bitcoin reserves: Powell’s remarksBitcoin’s price also took a hit after Federal Reserve Chair Jerome Powell’s hawkish tone and comments on the potential of a Bitcoin reserve.
During a press conference on Wednesday, Powell stated that the US central bank has no intention of being involved in any government efforts to stockpile large amounts of Bitcoin.
“We’re not allowed to own Bitcoin,” he said, following the Fed’s two-day policy meeting. While the Fed cut rates as expected, it also signaled a less certain monetary policy path in the coming months.
Regarding the legal issues of holding Bitcoin, Powell noted, “That’s the kind of thing for Congress to consider, but we are not looking for a law change at the Fed.”
Powell’s remarks came in response to discussions about a potential Strategic Bitcoin Reserve, which could be pursued once President-elect Donald Trump takes office.
The post Bitcoin plummets 9% amidst market jitters and Fed's hawkish tone appeared first on Invezz
Similar to Notcoin - Blum - Airdrops In 2024
Market.space (MASP) на Currencies.ru
|
