• Bitcoin dropped to beneath $100,500 as S&P 500 slipped 2.5%
• The Fed signalled a 50 bps price reduce for 2025, taming threat urge for food.

Bitcoin price fell practically 6% to beneath $100,500 on December 18, 2024 because the broader market traded decrease on the newest US Federal Reserve rates of interest determination.

BTC drops amid Fed information

Following the Federal Reserve’s 25 bps rate of interest reduce and Fed Chair Jerome Powell’s speech, shares gave up beneficial properties. Bitcoin led the crypto market’s destructive response, with traders seemingly taking a look at commentary that the central financial institution is not going to reduce its benchmark price as aggressively as anticipated within the subsequent 12 months.

Analysts pointed to Powell’s remarks as a hawkish stance for the Fed and the top of the easing cycle. The S&P 500 noticed a 2.5% drawdown.

2.5% drawdown for the S&P500 and boomers are in shambles pic.twitter.com/r3Vhjl4C8I

— Ok A L E O (@CryptoKaleo) December 18, 2024

BTC price fell sharply to additional transfer away from the current all-time excessive above $108. Trading close to $100k places Bitcoin on the key zone the place bears have beforehand dominated bulls.

“The US Fed has taken the expected action of cutting interest rates by 25bps. However, the cuts came with a hint of cautiousness by Jerome Powell. His hinting of only a 50 bps cut through 2025 is only half of what the public had been expecting prior to today’s FOMC meeting,” market intelligence platform Santiment wrote on X.

“Under these conditions, we are seeing big drops throughout multiple sectors. With Bitcoin and crypto being closely tied to the S&P 500 and other equities markets, prices have retraced on this news,” the platform added.

Other than BTC, different prime cash fell. ETH dipped 6% to $3,712 and XRP crashed 10% to $2.36.