On Thursday, bitcoin continued to decline, further retreating from its recent peak due to the unfavorable forecast of the US Federal Reserve. Writes UNN with reference to Investing.
As of 01:08 ET, bitcoin fell 2.6% to $101,153.0, briefly dropping below $100,000. The cryptocurrency set a recent record on Tuesday, reaching $108,244.9, thanks to President Donald Trump's plans to create a government bitcoin reserve.
Despite the Fed's 25 basis point cut in interest rates, the central bank announced a slowdown in the pace of further cuts, supporting only two cuts in 2025. This indicates a prolonged policy of high rates, which reduces liquidity and makes speculative assets, including bitcoin, less attractive.
During the meeting, Fed Chairman Jerome Powell emphasized that the central bank is not allowed to accumulate bitcoins, and this issue needs to be considered by Congress. These statements raised doubts about the implementation of Trump's plans, who did not provide details on the creation of the reserve.
Amid the news, bitcoin lost ground, and the broader crypto market followed suit. Ether fell by 4.7% to $3,684.62, XRP dropped by 5.6% to $2.3701, and Polygon, Cardano, and Solana lost between 2.5% and 6%. The Dogecoin memo token also fell by 5.6%.
Recall
The sharp rise in the value of bitcoin has attracted the attention of elite fashion brands and retailers, who have begun to consider cryptocurrency as a means of payment. This not only opens up access to new sources of income but also helps to win the loyalty of crypto investors.