Market Update: Bitcoin and Crypto Prices Plummet Amid Fed Chairman’s Remarks and Government Shutdown Looming
Market Analysis
Bitcoin (BTC) has lost its $100,000 threshold, experiencing a 6.4% drawdown in the past 24 hours, with a current price of $97,000 as of press time. This decline has led to a sharp correction among major altcoins, resulting in a total crypto market cap fall of 9% to $3.63 trillion.
Altcoin Declines
Ethereum (ETH) has fallen 10% over the past 24 hours, trading at $3,372. Solana (SOL) has also experienced a similar crash, dropping to a low of $187. Chainlink (LINK) and Dogecoin (DOGE) have suffered the worst performances among the 20 largest cryptos by market cap, with 17.3% and 18% corrections, respectively.
Fed Chairman’s Remarks
The recent market downturn is likely a result of Fed Chairman Jerome Powell’s statement about the US interest rate policy. On December 18, Powell signaled that the policy rate could be more cautious following recent cuts, with analysts predicting two rate cuts next year. The Fed Chair also noted that potential cuts will depend on market data and will take time for inflation to reach 2%.
Government Shutdown
The market’s uncertainty is further exacerbated by the 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 March 14, 2025. Trump is demanding that lawmakers address the national debt ceiling first.
Conclusion
The current market situation is a perfect storm of uncertainty, with the potential for a government shutdown and the Fed’s cautious approach to interest rates contributing to the decline. As the market navigates these challenges, investors should remain cautious and keep a close eye on market developments.
FAQs
Q: What is the current price of Bitcoin?
A: As of press time, Bitcoin is priced at $97,000.
Q: How has the total crypto market cap changed over the past 24 hours?
A: The total crypto market cap has fallen 9% to $3.63 trillion.
Q: Which altcoins have experienced the worst declines?
A: Chainlink (LINK) and Dogecoin (DOGE) have suffered the worst performances, with 17.3% and 18% corrections, respectively.
Q: What are the potential consequences of a government shutdown?
A: A government shutdown could disrupt numerous services and delay federal employee paychecks.
Q: What is the current market capitalization of Bitcoin?
A: The current market capitalization of Bitcoin is $1.91 trillion.
Q: What is the current 24-hour trading volume of Bitcoin?
A: The current 24-hour trading volume of Bitcoin is $105.71 billion.
