According to Zhitong Finance APP, due to the Federal Reserve's cautious attitude towards interest rate cuts, the price of Bitcoin fell below $100,000 on Thursday, dragging down the performance of speculative assets.
In the New York market, Bitcoin dropped to a low of $96,789, more than $10,000 lower than the historical high set on Tuesday, a decline of 4%. Other more volatile cryptocurrencies performed even worse, with Ethereum down 5% and Dogecoin plummeting 12%.
Federal Reserve officials cut borrowing costs for the third consecutive time but reduced the expectations for rate cuts in 2025. Federal Reserve Chairman Jerome Powell stated that more progress needs to be made in controlling inflation before further easing of monetary policy. Higher interest rates typically reduce the attractiveness of risk assets.
Tony Sycamore, a market analyst at IG Australia Pty, pointed out in a report that investors focused on &#34;recent U.S. inflation and economic activity data&#34; should not be surprised by the outcome of the Federal Reserve meeting. &#34;However, this meeting has become a catalyst for correcting speculative overheating. Since the U.S. election, risk assets, including stocks and Bitcoin, have attracted a large influx of speculative funds.&#34;
According to an analysis by Jake Werrett, legal counsel at the cryptocurrency trading platform dYdX, global economic indicators (such as interest rates) are closely related to the volatility of the cryptocurrency market, so a reduction in rate cut expectations will have a significant impact on the market. Werrett explained, &#34;Many investors view Bitcoin as a reserve currency, and lower interest rates typically mean more cash circulation, higher inflation, and increased investment incentives for value-storing assets like Bitcoin.&#34;
Since the U.S. election on November 5, the price of Bitcoin has risen by more than 45%. This surge is attributed to the elected president Donald Trump's promise to lift regulatory restrictions on cryptocurrencies. Trump also supported the proposal to establish a national Bitcoin reserve, further boosting market confidence.
Although the outcome of the Federal Reserve meeting disappointed some traders and triggered profit-taking, Paul Veradittakit, managing partner at Pantera Capital, stated, &#34;All signs indicate that Bitcoin's price has good support, and the outlook remains optimistic.&#34;
Trump's support for cryptocurrencies has overshadowed warnings about excessive market momentum and the lack of traditional valuation benchmarks. In contrast, the current president Joe Biden's administration implemented strict regulations on the industry after the market crash in 2022, which exposed high-risk operations and fraudulent activities.
Sean McNulty, trading director at liquidity provider Arbelos Markets, stated that after the Federal Reserve meeting, the market's demand for hedging against Bitcoin's decline has increased. Zann Kwan, chief investment officer at Revo Digital Family Office, predicts that Bitcoin may fall back to just above $90,000 in the short term

GBTC

The price of Bitcoin fell below $100,000, dropping to a low of $96,789, down 4% from its historical high. The Federal Reserve's cautious stance on interest rates has affected the performance of speculative assets, with other cryptocurrencies like Ethereum and Dogecoin also experiencing declines. Analysts point out that reduced expectations for interest rate cuts will significantly impact the market, although Bitcoin has risen over 45% since the U.S. elections, and the future outlook remains optimistic

- Bitcoin prices fell below $100,000 this Thursday, dropping to a low of $96,789, a decline of 4% from its recent peak, influenced by the Federal Reserve's cautious stance on interest rate cuts.  
- Other cryptocurrencies also suffered, with Ethereum down 5% and Dogecoin plummeting 12%, as the Fed's decision to lower borrowing costs for the third consecutive time raised concerns about speculative asset performance.  
- Analysts suggest that reduced expectations for interest rate cuts could significantly impact the crypto market, although optimism remains for Bitcoin's future price support despite recent volatility.

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Bitcoin falls below $100,000; analysts say it may drop to $90,000 in the short term