Price of Bitcoin He fell Under $93,000 On Monday, hitting the lowest price in a month – since November 26 – the so-called Santa Claus parade failed to materialize and crypto charts looked red as a holiday icon.
In less than a week, the leading cryptocurrency business has entered the upper hand. 108,000 dollarsAs the holiday season approaches, prices increase significantly. But the crooked, hawkish Federal Reserve, like Scrooge, says more and negates the value of assets. A careful approach To rate the cuts next year.
Low interest rates are favorable for Bitcoin and other “risk assets” such as stocks. As borrowing becomes cheaper, investors look for riskier assets like cash and U.S. Treasuries that can yield better returns than safer ones.
When the Fed last week cut its benchmark interest rate by 25 basis points to 4.25% from 4.5%, policymakers signaled fewer rate cuts next year than previously estimated. Among federal officials, most forecast two rate cuts next year, compared to four rate cuts forecast by U.S. central bank officials in September.
Inflation has slowed sharply since reaching 9.1 percent year over year in June 2022, according to the U.S. Bureau of Labor Statistics. Consumer Price Index. While it rose 2.7% in the 12 months to November, the latest report showed inflation was still above the Fed's 2% target.
Since the Fed began cutting interest rates in September, a 100 basis point cut in the U.S. central bank's benchmark rate has given policymakers more wiggle room, Powell explained.
“With today's action, we lowered our policy rating from the top percentage point, and our policy stance is now very restrictive,” Powell said. he said.. “So we can be more cautious when considering further adjustments to our policy levels.”
As market participants weighed in on the Fed's hawkish tone, bitcoin prices fell 13 percent last week. Ethereum And Solana18% and 15% respectively 3,300 dollars And 186 dollarsAt the same time, according to CoinGecko data.
Among altcoins, XRPThe price is marginally better, showing a 12% discount. 2.18 dollars At the same time. As they were coins Hitting hard In recent market trends, DogecoinPrice dropped to 22% 0.31 dollars last week.
Typically, the Santa Claus parade may take place during the last five business days of the year, followed by the first two business days of the New Year, in MarketWatch. And while the stock market is closed on Christmas Day, crypto trades in the afternoon as usual.
BRN analyst Valentin Fournier said that while the crypto market will see less trading activity for the rest of the year, that doesn't mean investors should hang their hats on Santa's hopes.
“With institutional activity expected to moderate and retail volumes expected to weaken in the final two weeks of the year, volatility should continue to moderate,” he wrote in a Monday note. “While continued negative momentum may lead to smaller losses, a sharp rebound is possible.”
Edited by Andrew Hayward.
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