Bitcoin (BTC) lost the $100,000 threshold after registering a 6.4% drawdown in the past 24 hours, priced at $97,000 as of press time.
Bitcoin fell to a low of $96,233 before attempting a recovery. As a result, crypto derivatives registered nearly $1.2 billion in liquidations over the period, based on CoinGlass data.
Sharper corrections among major altcoins followed BTC’s slump, as the total crypto market cap fell 9% in the same period to $3.63 trillion.
Ethereum (ETH) was trading at $3,372 after shedding 10% over the past 24 hours, while Solana (SOL) registered an identical crash to a low of $187.
Chainlink (LINK) and Dogecoin (DOGE) had the worst performances among the 20 largest cryptos by market cap, with 17.3% and 18% corrections, respectively.
The crashes are likely an aftermath of Fed Chairman Jerome Powell’s statement about the US interest rate policy.
On Dec. 18, Powell signaled that the policy rate could be more cautious following the recent cuts, which analysts see as two rate cuts next year. Additionally, the Fed Chair noted that potential cuts will depend on market data and will take time for inflation to reach 2%.
Despite the market’s uncertainty toward the US economy, Powell displayed optimism in his speech yesterday:
“It’s in a really good place, our policy is in a really good place (and) I expect another good year next year.”
Potential shutdown
In addition to the uneasiness created by Powell’s recent remarks, the US Congress faces a looming partial government shutdown, with only two days remaining to pass a spending bill.
President-elect Donald Trump has rejected a bipartisan stopgap measure intended to extend government funding through Mar. 14, 2025, insisting that lawmakers first address the national debt ceiling.
In response, congressional Republicans are developing an alternative plan that aligns with Trump’s demands to secure sufficient House and Senate support.
Without legislative action, a government shutdown, set to begin on Dec. 21, would disrupt numerous services and delay federal employee paychecks.
Trump has also proposed abolishing the debt limit entirely, a suggestion likely to be criticized due to concerns of fiscal irresponsibility.
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