- Bitcoin drops below $100K after Jerome Powell’s comments on Bitcoin and future rate cuts.
- Altcoins suffer large losses with Avalanche, Chainlink, and Litecoin dropping 16% following Powell’s remarks.
- Market activity remains strong, with large Bitcoin transactions and increased trading volumes despite bearish sentiment.
The price of Bitcoin dropped below $100,000 on December 18th after U.S. Federal Reserve Chair Jerome Powell’s comments. Powell’s remarks stirred uncertainty in both the crypto and traditional markets. With Bitcoin already under pressure, these statements fueled further concerns. As Bitcoin struggles to hold above this key level, altcoins experienced even larger drops.
Powell’s Comments Shake Market Confidence
Jerome Powell trended with his comments about Bitcoin. At a press conference, he made it clear that the Federal Reserve has no plans to hold Bitcoin. He also stated that there would be no effort to change the law regarding Bitcoin ownership. Alongside these remarks, Powell discussed the Federal Open Market Committee’s (FOMC) projections for 2025.
Bitcoin’s price fell to $101,292, a 2.01% decline in just 24 hours. As the cryptocurrency dropped below $100K, market sentiment shifted into bearish territory. Altcoins felt the impact the hardest. Avalanche, Chainlink, and Litecoin lost 16%, while Ethereum dropped 6%, and XRP saw a 10% decline. Bitcoin’s inability to hold the $100K level amplified the negative sentiment.
Bitcoin’s Key Resistance and Continued Market Activity
Technical analysis points to a possible head-and-shoulders pattern, suggesting Bitcoin may reach a price of $99,000. However, crypto analyst Ali noted that Bitcoin must rise above $105,400 to avoid a bearish outlook. Traders are keeping a close watch on these levels for any signs of recovery.
Despite this uncertainty, market activity remains strong. Large Bitcoin transactions show that whale activity continues, with a seven-day high of 926.53K BTC on December 16th. This suggests that institutional interest is still present. Furthermore, trading volumes have surged, increasing by 39.05%.
Options markets also saw a 33.15% rise in volume, indicating growing investor positioning. Net outflows of Bitcoin suggest confidence, as traders move BTC into cold storage. While Bitcoin faces challenges, the market stays active and engaged. Traders are monitoring key levels and preparing for the next major move.
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