Bitcoin drops below $100,000 as Fed rate forecast drags on cryptocurrency markets

• Bitcoin The stock price fell below $100,000 on Thursday as traders were upset by the Federal Reserve’s interest rate guidance.
• The cryptocurrency fell more than 5% to trade at around $98,000.
• Other cryptocurrencies, such as Ethereum and XRP, also declined.

Bitcoin fell below the $100,000 threshold on Thursday, weighed down by expectations of an interest rate cut in 2025.

While other risky assets such as stocks were looking to stage a rebound after Wednesday’s sharp decline, Bitcoin continued to decline. The Summit token fell more than 5% by midday to trade at around $98,835.

Other cryptocurrencies were also sold off Ethereum and XRP Both of them fell more than 4%. Meanwhile, the total cryptocurrency market cap fell nearly 7% to $3.41 trillion, according to CoinMarketCap data.

Cryptocurrency investors who have been fueling Bitcoin’s sharp rise over the past few months were upset after the Federal Reserve’s December policy meeting on Wednesday, which ended with Fed officials issuing hawkish guidance on the path for interest rates next year.

Despite cutting interest rates by 25 basis points, central bankers lowered interest rates Interest rate forecasts For 2025, FOMC members expect only two interest rate cuts next year, down from the four expected at the September meeting.

Comments from the Fed chair deepened the sell-off in risky assets on Wednesday afternoon, with Powell saying the central bank would take a more “cautious” stance when changing interest rates and that the possibility of future rate hikes was not ruled out.

“After breaking $108,000 on Wednesday, bitcoin has now fallen below $100,000,” Louis Naviellier, chief investment officer at Naviellier & Associates, said in a note. “The entire cryptocurrency sector has come under pressure in the wake of the stock market decline.” Thursday morning.

Bitcoin has crossed the $100,000 mark for the first time in early December, driven by a rise that continued for several weeks after Donald Trump’s election victory. Cryptocurrency enthusiasts have nicknamed Trump “Head encoder“, with hopes growing that it will boost the market by reducing regulation and even prompting the US government to start buying bitcoin itself.