Federal Reserve Chair Jerome Powell delivered unexpected hawkish remarks on Wednesday that sent Bitcoin tumbling below the $110,000 threshold. Powell stated during his post-policy meeting press conference that a December rate cut was far from guaranteed, catching traders off guard.
Markets had priced in a 90% probability of another rate reduction at the Fed’s final meeting of 2025. The central bank cut its benchmark rate by 25 basis points to a range between 3.75% and 4.0%, as widely anticipated. However, Powell’s cautionary tone overshadowed the decision.
Key takeaways
• Bitcoin plummets below $108K as $1.1B liquidation hits market
• How the fed rate cut affects Crypto market heading into December
Bitcoin drops below $108K as $1.1B liquidation hits market
Bitcoin dropped below $108,000 on Thursday as traders processed disappointing outcomes from President Trump’s meeting with Chinese leader Xi Jinping and Federal Reserve signals about future rate cuts. The decline pulled major cryptocurrencies down, with Ethereum, Solana, and other tokens experiencing significant losses.
Source: CoinMarketCap
The leading digital coin broke a new record of $126,080 at the beginning of October, dubbed “Uptober” by observers for historically strong crypto and stock market gains. However, Bitcoin now trades nearly 15% below that peak level.
Ethereum slid 5% over 24 hours, trading just above $3,782, while other top coins by market capitalization, including Solana, XRP, and DOGE, all traded lower by 6%. Altcoins took an even harder hit than Bitcoin during the sell-off.
The Crypto’s outlook heading into December
The cryptocurrency sell-off follows Federal Reserve Chair Jerome Powell’s Wednesday comments hinting that the U.S. central bank may not cut interest rates again this year. Bitcoin, crypto assets, and stocks typically perform well in low-interest-rate environments, and the Fed has cut rates at the last two meetings.
With Powell warning that another rate cut in December is “not a foregone conclusion,” Bitcoin holders are now caught between two outcomes: a break above $120,000 if economic data softens, or a correction toward $100,000 if the Fed turns hawkish in December.
Ultimately, the Fed has slowed the pace of easing, but by quietly ending its balance sheet runoff, it has also laid the groundwork for long-term Crypto resilience – even if short-term rallies face resistance.
The performance figures quoted are not a guarantee of future performance.
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