BTC/USD: Bitcoin Slumps to Two-Week Low as Powell’s Rates Scare Knocks Crypto Prices

Orange coin couldn’t hold on to its gains after the Fed boss said there won’t be as many interest rate cuts as expected. Prices dipped to $96,000.

• Bitcoin prices BTCUSD were feeling under the weather Friday morning as crypto traders were still digesting Wednesday’s interest rate decision and forward guidance by the Federal Reserve. The Fed delivered its final cut to interest rates in 2024 and dashed hopes of continued monetary policy easing — rates won’t get as low as markets had expected with just two trims planned for 2025, down from four.
• Crypto at first appeared to be taking it well. Bitcoin was holding up Thursday after an initial selloff was recouped from bargain-hungry traders and prices reclaimed $100,000. Friday is a different story. Broad-based weakness seemed to be sweeping every crypto corner with Bitcoin losing points fast, sliding to $96,000 from $100,000. Ethereum was down bad and the entire digital asset space had erased about 5% of its valuation to sit at $3.3 trillion.
• Nevertheless, it’s been a blockbuster year for digital assets. Bitcoin has more than doubled and hit a record high of $108,000, defying gravity, gloom-and-doom predictions and all the haters’ talk. Things really unfurled after President-elect Donald Trump won the White House for another four years and immediately brought crypto to the top of his to-do list. Now, prospects for crypto in the US are brighter than ever.