- Bitcoin fell below $100,500 as the S&P 500 dropped 2.5%
- The Fed announced a 50-basis-point cut for 2025, tempering risk appetite.
Bitcoin price fell nearly 6% to below $100,500 on December 18, 2024, as broader markets traded lower following the latest U.S. Federal Reserve interest rate decision.
BTC price drops amid Fed news
After the Fed’s 25-basis-point rate cut and a subsequent speech by Fed Chair Jerome Powell, equities gave back earlier gains.
Bitcoin led the negative reaction across the crypto market, with investors likely reacting to Powell’s suggestion that the central bank will not cut its policy rate as aggressively as previously expected over the next 12 months.
Analysts described Powell’s comments as signaling a hawkish tilt and the end of an easy-rate cycle. The S&P 500 experienced a 2.5% decline.
2.5% drawdown for the S&P500 and boomers are in shambles pic.twitter.com/r3Vhjl4C8I
— K A L E O (@CryptoKaleo) December 18, 2024
The BTC price plunged, moving further away from its recent all-time high above $108,000. Trading near the $100,000 mark places Bitcoin in a key zone where bears have previously overpowered bulls.
“The U.S. Fed took the expected action of cutting interest rates by 25 basis points. However, the cuts came with a cautious tone from Jerome Powell. His hint of just a 50-basis-point total cut through 2025 is only half of what the public expected before today’s FOMC meeting,” wrote market intelligence platform Santiment on X.
“Under these conditions, we are seeing large drawdowns across multiple sectors. Since Bitcoin and cryptocurrencies remain closely correlated with the S&P 500 and other equity markets, prices have pulled back on this news,” the platform added.
Beyond BTC, other major cryptocurrencies also weakened. ETH fell about 6% to $3,712, while XRP plunged roughly 10% to $2.36.