• Notification Date: 13-12-2024
• Notification No: N/A

Bitcoin Price Dips Below $100K Amid Rate Jitters Before Fed Decision

The recent rally of Bitcoin lost steam on Friday with the largest cryptocurrency of the world falling slightly to $99,961.4, a 0.7% drop from its previous price. The downturn mainly comes as traders assume a careful stance ahead of Federal Reserve rate decision next week.

Bitcoin had escalated on Thursday after President-elect Donald Trump recapitulated his promise to make the U.S. a global leader in cryptocurrency. Although the bounce was short-lived as Trump did not provide any major insights into his policy schemes.

Investors are now actively focusing on the decision of Federal Reserve next week where it is widely expected that the central bank will cut interest rates by 25 basis points. Although uncertainty becomes visible over the long-term plans of Federal Reserve specifically after producer inflation data for November exceeded expectations while consumer inflation remained firmly high. This has led to a stronger dollar which tends to pressure hazardous assets like cryptocurrencies.

As the rates of interest remain high the appeal of theoretical investments like Bitcoin and other cryptos has waned. Meanwhile, the market of cryptocurrency saw continued inflows into exchange-traded funds (ETFs) tracking Bitcoin and Ether. These inflows signal growing institutional interest specifically after Trump's election win in early November. Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust, have experienced inflows with 11 consecutive days of growth as of December 12.

While the price of Bitcoin immersed, most major altcoins, which include Ether, XRP, Solana, Cardano, and Polygon, also experienced losses. Although altcoins have generally outpaced Bitcoin in current weeks with markets predicting more favorable regulations in the U.S. for cryptos beyond Bitcoin.

As the decision of Federal Reserve appears, the investors are stimulating for the future of crypto markets amidst the uncertainty which is ongoing.