$96,000 Regression... Four Days of Shock from US Fed [Bitcoin Now]

Over 5% Drop in a Week as of the 22nd
Signal to Slow Down Interest Rate Cuts Seen as Negative
Trump's 'Strategic Reserve' Also Shows Negative Sentiment

Yonhap News

Bitcoin prices retreated to the $96,000 range in the third week of December. Investor sentiment weakened as the U.S. Federal Reserve (Fed) signaled that the pace of future interest rate cuts could be slower than expected. Fed Chair Jerome Powell's remarks on 'no Bitcoin reserves' also contributed to the bearish trend.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:56 PM on the 22nd, Bitcoin was trading at $96,951.75, up 0.36% from the previous session. Compared to a week ago, it fell 5.72%, and it was down 0.85% compared to a month ago. The year-over-year increase stands at 125.51%.

Bitcoin prices started near $103,000 on the 16th and reached an all-time high of $108,268.45 during trading on the 17th. However, it reversed downward afterward, entering a decline from the 19th and continuing to fall for four consecutive days. Numerically, this represents a drop of over 10%.

The retreat of Bitcoin prices to $100,000 on the 19th was due to the Fed signaling that the pace of future interest rate cuts in the U.S. might slow down. At this year’s final Federal Open Market Committee (FOMC) meeting, the Fed implemented three consecutive rate cuts but expressed a cautious stance on future rate reductions. Chair Powell stated at a press conference, "We have lowered the policy rate by 1 percentage point from its peak, including today," adding, "We may become more cautious when considering future rate adjustments." Powell also noted, "Inflation continues to be broadly persistent."

Jerome Powell’s remarks also had an impact. Powell expressed that he has no intention to get involved in the strategic Bitcoin reserve plan expected to be pursued by President-elect Donald Trump, who will officially take office in January next year. At the press conference, he said, "We do not allow holding Bitcoin." Regarding the establishment of laws and systems for Bitcoin reserves, he added, "This is a matter for Congress to consider," and stated, "The Fed has no plans to push for legislative changes."

The U.S. government's strategic Bitcoin reserve is considered a key policy in Trump’s cryptocurrency agenda. The Trump camp has also introduced the 'BITCOIN ACT' bill, which proposes holding Bitcoin as a strategic asset for the next 20 years. The BITCOIN ACT is an acronym derived from 'Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide.' The bill’s core components include ▲Strategic Bitcoin Reserve Bill (SBR) ▲Systematic Bitcoin purchase program ▲Comprehensive national custody policy.

According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, stood at 73 points (Greed) as of that day. This is one level lower than the previous week’s 80 points (Extreme Greed). Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating strong optimism.