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<p>Bitcoin faced turbulence after U.S. Federal Reserve Chair Jerome Powell’s recent comments, dropping below the critical $100,000 mark. His statements during the Federal Open Market Committee (FOMC) meeting on December 18th have stirred uncertainty across the cryptocurrency and equity markets, triggering sell-offs and cautious investor sentiment.</p><h3 id="powell-s-stance-on-bitcoin-dampens-market-hopes">Powell’s Stance on Bitcoin Dampens Market Hopes</h3><p>During the <a href="https://www.federalreserve.gov/default.htm" rel="noopener noreferrer nofollow">FOMC</a> press conference, Powell reiterated the Federal Reserve’s inability to hold Bitcoin and dismissed the possibility of seeking legal changes to allow this. Addressing questions about a U.S. government Bitcoin reserve, Powell stated:</p><blockquote>“We’re not looking for a law change.”</blockquote><p>These remarks dashed speculations of potential Bitcoin adoption by U.S. financial authorities, contributing to Bitcoin’s decline. At the time of writing, Bitcoin is trading at $101,292, down 2.01% over the past 24 hours.</p><h3 id="fomc-projections-add-to-market-jitters">FOMC Projections Add to Market Jitters</h3><p>The broader market was further shaken by Powell’s announcement that the Fed’s 2025 rate cut projections had been halved from four to two, signaling a cautious monetary policy outlook. This shift led to market-wide sell-offs, with Bitcoin breaking below the $100K psychological threshold.</p><p>Altcoins bore the brunt of the bearish sentiment, with Ethereum falling 6%, XRP down 10%, and Avalanche, <a href="https://icogemhunters.com/chainlinks-90-dream-will-link-mirror-ethereums-meteoric-rise/" rel="noopener noreferrer nofollow">Chainlink</a>, and Litecoin each losing 16% over the past 24 hours.</p><h3 id="whale-activity-and-market-dynamics">Whale Activity and Market Dynamics</h3><p>Despite the bearish sentiment, whale activity in the Bitcoin market has remained robust. Data from <a href="https://app.intotheblock.com/coin/BTC" rel="noopener noreferrer nofollow">IntoTheBlock</a> reveals that large transactions, exceeding $100K, hit a seven-day high of 926.53K BTC on December 16th, indicating sustained institutional interest.</p><p>Coinglass data showed a 39.05% surge in Bitcoin trading volumes, reaching $150.01 billion. Exchange netflows also revealed $43.3 million in net outflows on December 19th, as traders moved Bitcoin into cold storage, signaling confidence in its long-term value.</p><h3 id="technical-analysis-critical-levels-to-watch">Technical Analysis: Critical Levels to Watch</h3><p>Crypto analyst <a href="https://x.com/ali_charts" rel="noopener noreferrer nofollow">Ali</a> highlighted that Bitcoin has broken out of a head-and-shoulders pattern, projecting a potential bearish target of $99,000. However, Ali emphasized the importance of surpassing the $105,400 resistance level to invalidate the bearish outlook.</p><blockquote>“Bitcoin must break $105,400 to confirm recovery trends,” Ali stated.</blockquote><h3 id="market-sentiment-and-outlook">Market Sentiment and Outlook</h3><p>The overall crypto market cap fell by 5% to $3.44 trillion, while trading volumes rose by 40%, reflecting heightened market activity. Despite short-term uncertainty, the consistent whale activity and reduced sell pressure suggest that many investors remain optimistic about Bitcoin’s long-term trajectory.</p><h3 id="conclusion">Conclusion</h3><p>Powell’s cautious tone and the Fed’s revised rate cut projections have added to market volatility, keeping <a href="https://icogemhunters.com/the-future-of-crypto-bitcoin-altcoins-and-the-100k-turning-point/" rel="noopener noreferrer nofollow">Bitcoin</a> below $100,000. However, the continued institutional interest, increased trading activity, and reduced sell pressure indicate that Bitcoin may recover in the coming weeks. Investors are closely watching the $105,400 resistance level for signs of a potential rebound.</p><p><strong>Disclaimer:</strong>This content is for informational purposes only and should not be considered financial advice. Always conduct thorough research before making investment decisions.</p><p><em>Source: </em><a href="https://icogemhunters.com/btc-struggles-post-fomc-what-powells-speech-means-for-crypto-investors/" rel="noopener noreferrer nofollow">ICO Gem Hunters</a></p><p></p>

BTC Struggles Post-FOMC: What Powell’s Speech Means for Crypto Investors!

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