Bitcoin ( BTC-USD ) fell 4.3% on a weekly basis, as hawkish statements from the Federal Reserves fueled to a sell off. The cryptocurrency started the week off quite strongly, as it touched a record high of ~$108K on Tuesday, however, its rise tapered as the Fed signalled fewer cuts in 2025 on Wednesday. BTC went below the $100K mark on Thursday, and at the time of writing has failed to go past it. The Fed cut rates by 25 basis points, as expected, and signalled two more cuts next year. Fed Chair Powell also said that the Fed is "not allowed to hold Bitcoin ( BTC-USD )", and it's not looking for a law change that would allow that. “Bitcoin's price dip is likely more correlated to Fed Chair Jerome Powell's recent comments indicating fewer rate cuts in 2025 than it is related to the shutdown drama," said Cory Klippsten, CEO of Swan, a bitcoin financial services firm. Crypto markets suffered extended losses as Trump's plans to create a U.S. Bitcoin strategic reserve may fall apart even before he gets in office after Powell said that the Fed is not allowed to hold Bitcoin and they're not looking for a law change, Nick Ruck, director at LVRG Research. Wall Street's major market averages also witnessed a sell-off after the Fed's statements. "Although an interest rate cut would normally have a bullish reaction since it was largely expected, the market strongly reacted after Fed Chair Jerome Powell stated that inflation would be a continuing problem throughout the next year," Ruck said. The U.S.-listed spot Bitcoin exchange-traded funds also saw record outflows on Thursday, a CoinDesk report stated. "But in the mid to long run, we believe that monetary and fiscal stimulus policies in both the US and other parts of the world will ultimately expand liquidity across financial markets, especially as other countries seek to protect their economies against Trump tariffs. This will boost crypto markets, and especially Bitcoin as it becomes more of a safe haven asset akin to gold," said Jeff Mei, COO at BTSE. Bitcoin's fall from the $100K mark comes amid fears of a government shutdown in the U.S., after a spending bill backed by President-elect Donald Trump was voted down in the U.S. House of Representatives. Other Notable News El Salvador will sell or discontinue its Bitcoin ( BTC-USD ) wallet Chivo as part of a new deal with the International Monetary Fund. Block ( SQ ) was upgraded by Oppenheimer to Outperform from Perform as analyst Rayna Kumar laid out three key tailwinds. MicroStrategy ( MSTR ) is poised to "go back and build more intelligent leverage for the benefit of our common stock shareholders" as it relates to the Bitcoin ( BTC-USD ) development company's capital structure, co-founder and Chairman Michael Saylor said. MicroStrategy ( MSTR ) and Coinbase ( COIN ) are most likely to experience a short squeeze or a rally spurred by short sellers exiting their bearish bets Riot Platforms ( RIOT ) acquired 667 Bitcoin ( BTC-USD ) for about $67.5M at average price of $101,135 per coin, it disclosed on Monday. Bitcoin, Ether news Bitcoin ( BTC-USD ) down 1.7% to ~$97.1K at 2:16 pm on Friday. Ether ( ETH-USD ) fell 1.7% to $3.4K. Dear readers: We recognize that politics often intersects with the financial news of the day, so we invite you to click here to join the separate political discussion. More on crypto Wall Street Lunch: Adios Bitcoin? Kirk Spano On Bitcoin, Options Selling And A Choppy 2025 U.S. Dollar Concerns Drive Bitcoin And Coinbase Valuations Through The Roof Bitcoin 2025 outlook: Will the cryptocurrency's meteoric rise continue to $200K? Bitcoin rallies for three years in a row before tanking in the fourth year
