Bitcoin briefly dropped below $100,000 to $98,760 on Thursday, following the U.S. Federal Reserve's cautious outlook on interest-rate cuts. This marked a $10,000 decline from its record high earlier in the week. Other cryptocurrencies, including Ether and Dogecoin, also faced pressure.
The Federal Reserve reduced borrowing costs for the third time in a row but signaled fewer cuts ahead in 2025. Fed Chair Jerome Powell emphasized the need for more progress on inflation before easing monetary policies further.
Market Analyst Tony Sycamore noted that the Fed’s decision reflected ongoing strong U.S. inflation and economic activity data, dampening speculative enthusiasm in risk assets like Bitcoin. The announcement strengthened the U.S. dollar while weakening global stocks and bonds, with additional market jitters stemming from a possible U.S. government shutdown.
Despite this dip, Bitcoin remains up about 50% since November 5, driven by President-elect Donald Trump's pro-crypto stance. Trump has pledged to loosen regulatory constraints on cryptocurrencies and proposed creating a national Bitcoin reserve, contrasting sharply with the outgoing Biden administration's stricter crypto policies following the 2022 market turmoil.
Some analysts remain optimistic. Paul Veradittakit of Pantera Capital highlighted a strong outlook for Bitcoin, even as traders reacted to the Fed's decision by taking profits. However, caution persists. Zann Kwan, CIO of Revo Digital Family Office, suggested Bitcoin could briefly retreat to the low $90,000 range, while Sean McNulty from Arbelos Markets reported increased interest in hedging against further declines.
As of 5:54 PM UTC, Bitcoin was trading at $98,752.63
