Bitcoin's Big Fall From Highs: Why Is Jerome Powell Being Blamed?

Bitcoin tumbled more than 5% on Wednesday, its sharpest decline in over three months, as the Federal Reserve adopted a cautious approach to future interest-rate cuts.

As per the report by Bloomberg, the digital asset, which traded at $100,230 as of Thursday morning in Singapore, led a broader decline in speculative investments, with other major cryptocurrencies such as Ether, XRP, and Dogecoin also struggling.

Fed officials lowered borrowing costs for the third consecutive time but reined in expectations for further reductions in 2025. “More progress is needed on inflation before making further rate reductions,” said Fed Chair Jerome Powell during the meeting.

He also added, "We're not allowed to own bitcoin."

Bitcoin Falls 
Tony Sycamore, Market Analyst at IG Australia Pty, noted that the Fed’s decision shouldn’t have surprised investors, given recent strong US inflation and activity data.

“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,” Sycamore said, as reported by Bloomberg.

A surging dollar and a slide in global stocks and bonds compounded market jitters. Concerns about a potential US government shutdown further weighed on investor sentiment.


As per the report by Bloomberg, Despite the recent sell-off, Bitcoin remains 50% higher since the November 5 election and hit a record $108,316 earlier this week.

The rally was fueled by President-elect Donald Trump’s promise to loosen crypto regulations and consider a national cryptocurrency stockpile.

“All signs point to a good floor and outlook for Bitcoin,” said Paul Veradittakit, managing partner at Pantera Capital as mentioned in the report by Bloomberg. While some traders took profits following the Fed meeting, Veradittakit remains optimistic about Bitcoin's long-term prospects.