Bitcoin fell below $111,000 after Fed Chair Powell\u2019s hawkish comments.
\nPowell said a December interest rate cut is \u201cnot a foregone conclusion.\u201d
\nMajor cryptocurrencies like Ethereum, XRP, and Solana also posted losses.<\/p>\n
Bitcoin and the wider cryptocurrency market took a sharp downturn after US Federal Reserve Chair Jerome Powell signaled that a highly anticipated December interest rate cut was not guaranteed, reversing market sentiment that had priced in further easing.<\/span><\/p>\n The hawkish remarks immediately spooked investors, sending Bitcoin below a key support level and triggering a broad sell-off across digital assets. <\/span><\/p>\n While the Fed did deliver an expected quarter-point rate cut, Powell\u2019s commentary on the future path of monetary policy became the dominant driver of the market\u2019s negative reaction.<\/span><\/p>\n At the conclusion of the Federal Open Market Committee (FOMC) meeting, Powell announced a 0.25% point reduction in the policy rate to a range of 3.75-4.00%. <\/span><\/p>\n However, he quickly tempered market optimism by adopting a cautious stance on future moves, stating a December cut \u201cis not a foregone conclusion.\u201d<\/span><\/p>\n Powell explained that the central bank needs more economic data, particularly after the recent government shutdown obscured key indicators. <\/span><\/p>\n \u201cWe may need to slow the pace of policy (rate) adjustments. I hope to obtain more data by December,\u201d he said at the press conference.<\/span><\/p>\n He also revealed a growing divide within the committee. <\/span><\/p>\n \u201cMore and more Fed members want to delay rate cuts,\u201d Powell continued, adding, \u201cAfter two consecutive rate cuts, some members are taking a wait-and-see stance. <\/span><\/p>\n The view that we should wait at least one cycle is spreading.\u201d<\/span><\/p>\n The market\u2019s reaction to Powell\u2019s unexpected caution was swift and decisive. <\/span><\/p>\n Bitcoin, which had been trading steadily around the $113,000 level before the press conference, broke below its $110,000 support moments after his remarks, hitting an intraday low in the $109,000 range. <\/span><\/p>\n As of Thursday, the token was still struggling around $110,000, down roughly 2% from the previous day.<\/span><\/p>\n The weakness was felt across the entire crypto ecosystem. <\/span><\/p>\n According to CoinMarketCap, other major cryptocurrencies also posted significant losses:<\/span><\/p>\n Ethereum (ETH)<\/span><\/strong>\u00a0fell 1.93% to $3,899.87.<\/span><\/p>\n XRP<\/span><\/strong>\u00a0dropped 2.74% to $2.53.<\/span><\/p>\n Solana (SOL)<\/span><\/strong>\u00a0declined 1.04% to $192.37.<\/span><\/p>\n However, Powell\u2019s press conference was not entirely hawkish. He also formally announced the end of the Fed\u2019s asset reduction program, known as Quantitative Tightening (QT), which could increase liquidity in the financial system.<\/span><\/p>\n \u201cWe have decided to end QT as of December 1,\u201d Powell stated. He explained that the Fed\u2019s balance sheet had shrunk by $2.2 trillion over three and a half years. <\/span><\/p>\n \u201cWe now believe we are close to sufficient reserves,\u201d he said, signaling a shift toward balance sheet normalization.<\/span><\/p>\n With the Fed\u2019s immediate policy path now clarified, investors are pivoting their attention to the next major potential catalyst: the US-China summit. <\/span><\/p>\n Following the crypto market plunge, traders are looking to the meeting between US President Donald Trump and Chinese President Xi Jinping as a possible source of positive news that could trigger a rebound. <\/span><\/p>\n The high-stakes meeting is scheduled for Thursday morning at the \u2018Naraemaru\u2019 facility at Gimhae Airport Air Force base.<\/span><\/p>\n The post Crypto update: Bitcoin tumbles below $111K as Powell dashes December rate cut hopes<\/a> appeared first on CoinJournal<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin fell below $111,000 after Fed Chair Powell\u2019s hawkish comments. Powell said a December interest rate cut is \u201cnot a foregone conclusion.\u201d Major cryptocurrencies like Ethereum, XRP, and Solana also posted losses. Bitcoin and the wider cryptocurrency market took a sharp downturn after US Federal Reserve Chair Jerome Powell signaled that a highly anticipated December […]<\/p>\n","protected":false},"author":0,"featured_media":5274,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-5273","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin"},"acf":[],"_links":{"self":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/5273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/comments?post=5273"}],"version-history":[{"count":0,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/5273\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media\/5274"}],"wp:attachment":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media?parent=5273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/categories?post=5273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/tags?post=5273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Powell pours cold water on December rate cut hopes<\/span><\/h2>\n
Bitcoin leads broad market plunge<\/span><\/h2>\n
A silver lining? Fed to end quantitative tightening<\/span><\/h2>\n
With Fed in rearview, all eyes turn to US-China summit<\/span><\/h2>\n