{"id":109734,"date":"2024-12-20T12:04:06","date_gmt":"2024-12-20T08:04:06","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=109734"},"modified":"2024-12-20T12:04:09","modified_gmt":"2024-12-20T08:04:09","slug":"bitcoin-falls-below-100000-amid-profit-taking-and-hawkish-fed-stance","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/bitcoin-falls-below-100000-amid-profit-taking-and-hawkish-fed-stance\/12\/20\/market-updates\/","title":{"rendered":"Bitcoin Falls Below $100,000 Amid Profit-Taking and Hawkish Fed Stance"},"content":{"rendered":"\n

<\/p>\n\n\n\n

Bitcoin extended its losing streak to a third day on Friday, retreating 3.7%<\/strong> to trade at $97,002.0<\/strong> by 00:46 ET (05:46 GMT). The decline comes in the wake of the Federal Reserve\u2019s hawkish monetary policy signals and profit-taking after the cryptocurrency reached record highs earlier in the week.<\/p>\n\n\n\n

Bitcoin Pullback Following Record Highs<\/strong><\/h3>\n\n\n\n
    \n
  • All-Time High and Profit-Taking<\/strong>: Bitcoin hit an all-time high of $108,244.9<\/strong> on Tuesday but has since seen a sharp pullback due to profit-taking and growing macroeconomic uncertainty.<\/li>\n\n\n\n
  • Hawkish Fed Impact<\/strong>: The Federal Reserve\u2019s decision to slow the pace of rate cuts in 2025, coupled with a forecast of only two cuts compared to the previously expected four, has weighed heavily on speculative assets like Bitcoin.<\/li>\n<\/ul>\n\n\n\n

    Fed Comments and Strategic Bitcoin Reserve Doubts<\/strong><\/h3>\n\n\n\n
      \n
    • Jerome Powell\u2019s Remarks<\/strong>: Fed Chair Jerome Powell<\/strong> dismissed the idea of the central bank participating in a Strategic Bitcoin Reserve, a proposal floated by incoming President Donald Trump<\/strong> in a recent interview.<\/li>\n\n\n\n
    • Market Impact<\/strong>: Powell\u2019s stance reinforced concerns over regulatory hurdles for government involvement in Bitcoin, further dampening market sentiment.<\/li>\n<\/ul>\n\n\n\n

      El Salvador Stays Committed to Bitcoin Despite IMF Concerns<\/strong><\/h3>\n\n\n\n
        \n
      • IMF Agreement<\/strong>: El Salvador has agreed to scale back Bitcoin’s role in its economy to secure a $1.4 billion loan<\/strong> from the International Monetary Fund.<\/li>\n\n\n\n
      • Continued Bitcoin Purchases<\/strong>: Despite the IMF\u2019s warnings, President Nayib Bukele<\/strong> stated that the country will accelerate Bitcoin purchases, with the recent rally boosting the valuation of its holdings.<\/li>\n<\/ul>\n\n\n\n

        Altcoins Suffer Steeper Losses<\/strong><\/h3>\n\n\n\n

        Broader cryptocurrency markets also tumbled sharply, with altcoins experiencing even larger declines than Bitcoin:<\/p>\n\n\n\n

          \n
        • Ethereum (ETH)<\/strong>: Fell 7.5%<\/strong> to $3,3379.39<\/strong>, marking its fourth consecutive day of losses and a 15% weekly decline<\/strong>.<\/li>\n\n\n\n
        • XRP<\/strong>: Dropped 2.5%<\/strong> to $2.3009<\/strong>.<\/li>\n\n\n\n
        • Solana and Polygon<\/strong>: Declined by 6.4%<\/strong> and 7%<\/strong>, respectively.<\/li>\n\n\n\n
        • Cardano (ADA)<\/strong>: Plunged more than 8%<\/strong> to trade at $0.8965<\/strong>.<\/li>\n\n\n\n
        • Dogecoin (DOGE)<\/strong>: Among meme tokens, Dogecoin suffered the steepest drop, falling 11.2%<\/strong> to $0.3199<\/strong>.<\/li>\n<\/ul>\n\n\n\n

          Outlook<\/strong><\/h3>\n\n\n\n

          The cryptocurrency market continues to face headwinds from tightening monetary policies, regulatory uncertainties, and profit-taking after significant rallies. While Bitcoin’s retreat below the $100,000<\/strong> mark reflects broader risk-off sentiment, El Salvador\u2019s ongoing commitment to the asset signals that crypto adoption remains uneven globally.<\/p>\n\n\n\n

          Altcoins, which are traditionally more volatile, are likely to remain under pressure as traders reassess their positions in light of a hawkish Fed outlook.<\/p>\n","protected":false},"excerpt":{"rendered":"

          Bitcoin extended its losing streak to a third day on Friday, retreating 3.7% to trade at $97,002.0 by 00:46 ET (05:46 GMT). The decline comes in the wake of the Federal Reserve\u2019s hawkish monetary policy signals and profit-taking after the cryptocurrency reached record highs earlier in the week. Bitcoin Pullback Following Record Highs All-Time High …<\/p>\n","protected":false},"author":9,"featured_media":101614,"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":[],"class_list":["post-109734","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-cryptocurrencies","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109734","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=109734"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109734\/revisions"}],"predecessor-version":[{"id":109736,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109734\/revisions\/109736"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/101614"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=109734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=109734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=109734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}