Bitcoin Drops to $63,000 Despite Federal Reserve Rate Cut Signals

Bitcoin (BTC) experienced a sharp decline to start the week, falling to $63,000 despite Federal Reserve Chair Jerome Powell's indication of potential rate cuts in the near future.

The world’s largest cryptocurrency by market capitalization saw a 3.6% drop in the past 24 hours, sliding from $65,675 to $63,288. Over the past week, BTC has remained relatively flat, erasing the gains from its recent rally to $66,000.

During a speech at the National Association for Business Economics in Nashville, Powell downplayed expectations of aggressive rate cuts, signaling that future reductions might be smaller. While acknowledging the possibility of two cuts in 2024, he indicated each would likely be 0.25%, lower than the previous 50-basis-point cut.

"This committee isn’t in a rush to aggressively lower rates," Powell emphasized.

These comments come just weeks after the Federal Open Market Committee (FOMC) made its first rate cut since March 2020. While market sentiment has shifted to a more cautious outlook for the Fed's November meeting, expectations for December remain slightly more bullish.

According to the CME Group's FedWatch Tool, there is now a 48% chance of a 0.5% rate cut at the FOMC's December 18 meeting.

Despite the current pullback, Bitcoin has shown resilience. Data from CoinGlass suggests that Bitcoin is on track to close the third quarter with a modest 0.6% gain and a 7% rise in September, a historically bearish month for the cryptocurrency.

Earlier this month, Bitcoin dropped 11% in the first week but managed a strong recovery after the Fed's initial rate cut announcement. Bitcoin Drops to $63,000 Despite Federal Reserve Rate Cut Signals

Bitcoin (BTC) experienced a sharp decline to start the week, falling to $63,000 despite Federal Reserve Chair Jerome Powell's indication of potential rate cuts in the near future.

The world’s largest cryptocurrency by market capitalization saw a 3.6% drop in the past 24 hours, sliding from $65,675 to $63,288. Over the past week, BTC has remained relatively flat, erasing the gains from its recent rally to $66,000.

During a speech at the National Association for Business Economics in Nashville, Powell downplayed expectations of aggressive rate cuts, signaling that future reductions might be smaller. While acknowledging the possibility of two cuts in 2024, he indicated each would likely be 0.25%, lower than the previous 50-basis-point cut.

"This committee isn’t in a rush to aggressively lower rates," Powell emphasized.

These comments come just weeks after the Federal Open Market Committee (FOMC) made its first rate cut since March 2020. While market sentiment has shifted to a more cautious outlook for the Fed's November meeting, expectations for December remain slightly more bullish.

According to the CME Group's FedWatch Tool, there is now a 48% chance of a 0.5% rate cut at the FOMC's December 18 meeting.

Despite the current pullback, Bitcoin has shown resilience. Data from CoinGlass suggests that Bitcoin is on track to close the third quarter with a modest 0.6% gain and a 7% rise in September, a historically bearish month for the cryptocurrency.

Earlier this month, Bitcoin dropped 11% in the first week but managed a strong recovery after the Fed's initial rate cut announcement.