Important points
- The Federal Reserve's hawkish stance has pushed Bitcoin prices below $100,000.
- Meme tokens experienced a sharp decline amid the market decline.
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Bitcoin fell nearly 6% amid a broader market decline, trading below $100,000 after the Federal Reserve adopted a hawkish tone at Wednesday's FOMC meeting. data From CoinGecko.
The Fed cut its benchmark interest rate by 25 basis points as expected, but now expects only two cuts in 2025, down from its previous forecast of four cuts. Federal Reserve Chairman Jerome Powell said the Fed will be more cautious when considering further adjustments to interest rates.
The Fed's surprisingly hawkish stance prompts analysts to adjust. their Expected rate cut. Morgan Stanley Analyst It noted that a rate cut in January 2025 is no longer expected.
Similarly, market expectations for a rate cut at the January Fed meeting have also waned. Based on the CME FedWatch tool, the probability of the Fed cutting rates at its January meeting has dropped to 8.6%. dataMeanwhile, the probability that current interest rates will be maintained rose to 91% from about 81% the day before.
Stock and cryptocurrency markets reacted strongly to Powell's hawkish signals. The Nasdaq fell more than 3% and the Dow suffered its longest losing streak in 50 years. The dollar hit a two-year high as bond yields rose across the curve.
Bitcoin briefly fell by $5,000 during Powell's speech and fell to $98,900 on Wednesday night, but has since recovered to over $100,000. Other crypto assets also fell, with Ethereum down more than 5% to $3,600, Ripple down nearly 9% and Dogecoin down 8%, according to CoinGecko data.
Meme tokens experienced the steepest declines in 24 hours, with Popcat (POPCAT) down 20% and Peanuts the Squirrel (PNUT) down 19%. Other meme coins such as Pepe (PEPE), dogwifhat (WIF), Bonk (BONK), and Floki (FLOKI) all posted double-digit losses.
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