BlackRock, the world’s leading asset management firm, reportedly spent $1 billion on Bitcoins just on the eve of the sharp drop in BTC price. The latter was triggered by the Fed Chairman’s announcement that he would change the pace of interest rate cuts. The announcement was accompanied by statements that cast a shadow over Bitcoin’s strategic reserve plans.
December 18, 2024 will be remembered as the day when Federal Reserve Chairman Jerome Powell set the crypto market on fire with a few sentences. To the surprise of many, the Fed proposed a reduction in rate cuts for 2025: next year there will be two rate cuts instead of four, as previously expected.
The lower interest rates usually fuel the crypto market. Therefore, the tapering of the rate cut is a bearish signal. Furthermore, Powell said that the central bank is not interested in holding Bitcoin (BTC) and that it is not even interested in it.
Several experts describe the 25 basis point rate cut as “hawkish” or even “aggressive.” The move triggered panic selling in the crypto market. Bitcoin fell 13% in 48 hours. Many altcoins saw even greater price drops: Dogecoin lost 26%, Ether fell 16%, while XRP fell 18%. The CoinGlass data shows that over 1.4…
