Bitcoin the flagship crypto asset dropped below its psychological barrier of $100,000 following Fed cut rates announced by the Federal Open Market Committee yesterday.
Bitcoin will be falling below the $100,000 price level for the first time since the first week of December after breaching the $100,000 price level for the first time within the same period.
The Total market capitalization of all crypto assets dropped by 4.7% following the Fed cut rates announcement as Bitcoin the flagship asset dropped below $100,000
At the time of the report, Bitcoin has slightly recovered to $101,652 gaining nearly $2000 from the $100,000 mark.
The FOMC chairman Jerome Powell yesterday announced the new data on the Federal cut rate. The Committee has decided to cut the Federal Fund rates by a 25-basis point.
Regarding the legal complexities of holding bitcoin, Powell clarified “That’s the kind of thing for Congress to consider, but we are not looking for a law change at the Fed.”
The FOMC chairman’s comment on the Central Bank not being able to hold Bitcoin has cast shadows on Donald Trump’s promise to setup a strategic Bitcoin reserve for the country when he assumes office.
Bitcoin last fell below $100,000 a day after crossing $108,000 for the first time this year. Ether fell 4.5% to $3,665, while XRP slid 6.8% to $2.35.