Bitcoin Slides Below $103K Amid Fed Rate Uncertainty
Major cryptocurrencies declined sharply as the cryptocurrency market slid due to growing uncertainty over a potential Federal Reserve rate cut. Bitcoin fell 3% to $103,222, testing support at $100,000. Ethereum dropped 4.7% to $3,434, XRP fell 5.3% to $2.40, and Solana plunged 8.85% to $154.76. Analysts attributed the selloff to profit-taking near resistance and cascading liquidations of leveraged long positions after Bitcoin failed to sustain above $107,000. Market volatility was exacerbated by mixed signals from Fed Chair Jerome Powell, who downplayed odds of a December rate reduction. The CME FedWatch tool shows a 66.9% chance of a cut, but internal Fed divisions continue to fuel uncertainty. A breach below $100,000 could trigger further selling pressure in the cryptocurrency market.
Bearish
The sharp slide in Bitcoin and other major cryptocurrencies reflects heightened risk aversion as traders reacted to mixed signals on U.S. monetary policy. Historically, periods of Fed uncertainty have triggered selloffs in risk assets. For example, Bitcoin dropped 7% in September when Powell cast doubt on rate cuts. The recent failure of BTC to hold above $107,000 sparked profit-taking and forced liquidations of leveraged long positions, amplifying the downturn. In the short term, volatility is likely to persist, and a breach of the $100,000 support could lead to further declines and increased margin calls. Over the longer term, clarity on Fed policy—if a rate cut is confirmed—could restore risk appetite and stabilize the cryptocurrency market. However, until market participants gain confidence, trading activity may remain subdued, and price swings may intensify.