- Bitcoin and other cryptocurrencies reacted to the Federal Open Market Committee's rates cut announcement
- For the third consecutive year, Fed officials reduced borrowing costs, but they limited the number of cuts they anticipated in 2025
- Chair Jerome Powell stated that more progress on inflation is required before further easing monetary policy
Bitcoin, the world’s largest cryptocurrency by market capitalisation, has dropped below $100,000 for the first time since the first week of December. By its sheer size, the drop also affected other crypto assets, including Ethereum and altcoins.
According to data from Coinmarketcap, at 4 pm Nigerian time on December 19, Bitcoin traded a little above $100k and eventually dropped to $99k at 4:25 pm. At the time of writing, it has depreciated further to $97,606, depreciating by 3.55% over the past day.
Bitcoin’s market capitalisation was also in the reds, depreciating by 3.59% to $1.93 trillion over the past day. But the 24-hour volume of trade appreciated by 7.49%
To settle at $98.77 billion.
Other coins Bitcoin dragged along are Ethereum (which depreciated by 7.50% in the past day and currently trades at $3,415.14), XRP (which decreased by 3.73% in the last 24 hours to trade at $2.27), Sui, which dropped by 7.76% in the previous day to trade at $4.05, and many others.
Why did Bitcoin drop below $100k?
According to market analysts, Bitcoin and other cryptocurrencies reacted to the Federal Open Market Committee's rates cut announcement.
For the third consecutive year, Fed officials reduced borrowing costs, but they limited the number of cuts they anticipated in 2025. Chair Jerome Powell stated that more progress on inflation is required before further easing monetary policy.
Bloomberg quoted IG Australia Pty Market Analyst Tony Sycamore as saying in a note that the result of the Fed meeting shouldn’t have surprised investors watching “the recent run of warm US inflation and activity data.” He added, “However, it has served as the catalyst to wash away some of the speculative excesses that flowed into risk assets, including stocks and Bitcoin, following the US election.”
According to Jake Werrett, general counsel at dYdX Trading, less rate cuts may have an effect because changes in the cryptocurrency market can be correlated with global economic indicators such as interest rates.
“Bitcoin, specifically, is seen by many investors as a reserve currency, and lower rates means more cash in circulation, higher inflation, and increased incentive to invest in store-of-value assets—such as Bitcoin,” Werrett said.
Hamster Kombat loses 18 million players, 98% of trading volume
Meanwhile, TheRadar earlier reported that the popular Telegram-powered tapper game Hamster Kombat lost over 18 million players between November and today. The game’s token HMSTR also lost 97% of the trading volume reported on November 10.
Hamster Kombat was one of the most popular Telegram-powered tappers on Web3. In August this year, the game’s developers claimed to have over 300 million active players. However, the game has seen a continuous, massive decline since the HMSTR token listing and the start of trading.
