This is the first time Bitcoin has fallen below this psychological barrier since early December, after briefly surpassing it within the same period. The total market capitalization of all cryptocurrencies also took a hit, dropping 4.7% following the rate cut announcement.
However, Bitcoin has slightly recovered to $101,652, gaining nearly $2,000 from the $100,000 mark.
The Federal Reserve’s decision to cut interest rates by 25 basis points was expected, but Chairman Jerome Powell’s comments on Bitcoin were surprisingly bearish.
Powell stated that the Central Bank cannot hold Bitcoin and is not seeking any legislative changes on the matter. This has cast doubt on Donald Trump’s promise to set up a strategic Bitcoin reserve for the US.
