Bitcoin plummeted to under $100,000 for the first time in recent history as the Federal Reserve hinted at rate cuts in 2025. The move sparked a chain reaction of liquidations across major cryptocurrencies, with XRP and DOGE experiencing significant losses.
The drop was attributed to Fed Chair Jerome Powell’s comments about the central bank not being allowed to own bitcoin under current regulations. This led to a decline in Bitcoin futures, causing an unusually high $70 million worth of liquidations.
Other top cryptocurrencies, such as XRP and SOL, also suffered from massive price swings, with losses ranging from 5-10%. BNB Chain’s BNB fell by 2.5%, while Chainlink’s LINK saw its value drop by 10%.
The market reaction to Powell’s comments has led some traders to speculate that a local top may have been reached, dampening expectations of a continued rally in the coming months.
However, not all experts are bearish on the market. Shaurya Malwa, Co-Leader of CoinDesk tokens and data team in Asia, remains bullish for 2025, citing potential benefits from Trump’s presidency.
Source: https://www.coindesk.com/markets/2024/12/19/bitcoins-nosedive-to-under-100-k-shaves-700-m-crypto-longs-xrp-drops-5