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Bitcoin’s price dropped below $100,000
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.
Vikram Subburaj, CEO of Giottus, noted, “Bitcoin experienced a significant pullback post-hawkish commentary from the US Fed. Despite a 25bps interest rate cut, the guidance of only two cuts in 2025 dampened market optimism, triggering a sharp correction across crypto.” Over $850 million in derivative liquidations followed the sentiment shift. Bitcoin is now trading just above $100,000, likely entering a consolidation phase.
Other major cryptocurrencies also saw declines, including XRP (6.3%), BNB (1.1%), Solana (4%), Dogecoin (6%), Cardano (4.2%), Tron (3.7%), Avalanche (8.3%), Chainlink (10%), and Shiba Inu (6%).
Bitcoin has more than doubled this year, reaching over $100,000, fueled by optimism surrounding Trump’s pro-crypto stance.
In the last 24 hours, Bitcoin’s market cap fell to $2 trillion, with a dominance of 57.01%, according to CoinMarketCap. BTC volume surged by 34.8% to $98.56 billion.
