{"id":109679,"date":"2024-12-19T12:02:28","date_gmt":"2024-12-19T08:02:28","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=109679"},"modified":"2024-12-19T12:02:32","modified_gmt":"2024-12-19T08:02:32","slug":"bitcoin-retreats-as-feds-hawkish-stance-and-powells-comments-weigh-on-sentiment","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/bitcoin-retreats-as-feds-hawkish-stance-and-powells-comments-weigh-on-sentiment\/12\/19\/market-updates\/","title":{"rendered":"Bitcoin Retreats as Fed&#8217;s Hawkish Stance and Powell\u2019s Comments Weigh on Sentiment"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>Bitcoin extended its decline on Thursday, retreating 2.6% to $101,153.0 by 01:08 ET (06:09 GMT), as the U.S. Federal Reserve&#8217;s hawkish tone dampened risk appetite. The cryptocurrency briefly dipped below the $100,000 mark during the session, marking a sharp pullback from its all-time high of $108,244.9 reached earlier this week.<\/p>\n\n\n\n<p>The Federal Reserve reduced interest rates by 25 basis points as expected but signaled a significantly slower pace of cuts in 2025. Policymakers projected only two rate reductions next year, down from previous expectations of four, signaling a prolonged period of higher borrowing costs. This more cautious outlook curbed liquidity in financial markets, making speculative assets like cryptocurrencies less attractive.<\/p>\n\n\n\n<p><strong>Fed Chair Powell Rules Out Bitcoin Accumulation by the Central Bank<\/strong><br>Adding to the bearish sentiment, Federal Reserve Chair Jerome Powell dismissed the notion of the central bank stockpiling Bitcoin. During a press briefing, Powell stated that accumulating large amounts of Bitcoin is not within the Fed&#8217;s purview and would require congressional approval. His comments coincided with speculation about the incoming Trump administration\u2019s proposal for a Strategic Bitcoin Reserve, which has already faced skepticism over regulatory feasibility.<\/p>\n\n\n\n<p>Powell\u2019s remarks compounded doubts about the viability of such a reserve, despite President-elect Donald Trump raising the possibility last week. The lack of concrete details regarding the plan has further weighed on market sentiment.<\/p>\n\n\n\n<p><strong>El Salvador&#8217;s Bitcoin Reversal Amid IMF Deal<\/strong><br>Elsewhere, El Salvador\u2019s President Nayib Bukele scaled back his push to make Bitcoin a national currency as part of negotiations for a $1.4 billion loan from the International Monetary Fund (IMF). This move marks a departure from Bukele&#8217;s earlier ambitions, which included adopting Bitcoin as legal tender in 2021 and issuing Bitcoin-backed bonds.<\/p>\n\n\n\n<p>While El Salvador has temporarily shelved its Bitcoin-related projects, the country has benefited from the recent surge in Bitcoin prices, boosting the valuation of its existing crypto holdings.<\/p>\n\n\n\n<p><strong>Altcoins Follow Bitcoin\u2019s Decline<\/strong><br>The Federal Reserve&#8217;s hawkish outlook also weighed on altcoins, which extended their losses for the second consecutive day.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Ether (ETH)<\/strong> fell 4.7% to $3,684.62.<\/li>\n\n\n\n<li><strong>XRP<\/strong> tumbled 5.6% to $2.3701.<\/li>\n\n\n\n<li><strong>Solana (SOL)<\/strong> slipped 2.5%, while <strong>Polygon (MATIC)<\/strong> dropped 6%.<\/li>\n\n\n\n<li><strong>Cardano (ADA)<\/strong> fell over 4%, and meme token <strong>Dogecoin (DOGE)<\/strong> lost 5.6%.<\/li>\n<\/ul>\n\n\n\n<p>With risk appetite subdued, cryptocurrencies remain under pressure, reflecting the broader downturn in speculative assets. Investors are likely to remain cautious as they navigate the uncertain monetary policy landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin extended its decline on Thursday, retreating 2.6% to $101,153.0 by 01:08 ET (06:09 GMT), as the U.S. Federal Reserve&#8217;s hawkish tone dampened risk appetite. The cryptocurrency briefly dipped below the $100,000 mark during the session, marking a sharp pullback from its all-time high of $108,244.9 reached earlier this week. The Federal Reserve reduced interest &hellip;<\/p>\n","protected":false},"author":9,"featured_media":98301,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[40,36],"tags":[6904,7123,9884],"class_list":["post-109679","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-cryptocurrencies","category-market-updates","tag-bitcoin","tag-demand","tag-microstrategy"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109679","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=109679"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109679\/revisions"}],"predecessor-version":[{"id":109680,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109679\/revisions\/109680"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/98301"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=109679"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=109679"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=109679"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}