Bitcoin price drops to $100K

Bitcoin’s (CRYPTO:BTC) price has dropped significantly, nearing $100,000 following the Federal Reserve’s latest rate cut.

The US central bank reduced interest rates by 25 basis points, marking the third consecutive cut.

However, contrary to previous market responses, Bitcoin and the broader crypto market declined sharply.

This immediate drop could be linked to comments from Fed Chair Jerome Powell, who indicated that the rate cuts might slow or even halt due to concerning Consumer Price Index (CPI) data from November and October.

“Today was a closer call but we decided it was the right call,” Powell remarked.

Bitcoin, which had recently been trading near $108,300, dropped to a multi-day low of $100,250.

This plunge represents a swift decline of over $8,000 in just 36 hours.

As Bitcoin led the market downturn, altcoins experienced even more significant losses.

XRP (CRYPTO:XRP) saw a sharp dip below $2.2 before recovering to $2.3, but the token remains down more than 11% on the day.

Other altcoins such as DOGE (CRYPTO:DOGE), AVAX (CRYPTO:AVAX), and SHIB (CRYPTO:SHIB) faced similar declines, while ETH (CRYPTO:ETH), BNB (CRYPTO:BNB), and SOL (CRYPTO:SOL) posted relatively smaller losses.

The total cryptocurrency market cap, which had already decreased by $150 billion, dropped an additional $200 billion, bringing its value to $3.65 trillion.

Liquidation of positions has surged, with nearly $700 million in total value wiped out.

Long positions were particularly impacted, accounting for $600 million of the losses.

Over 250,000 traders have been liquidated in the past 24 hours, according to data from CoinGlass.

At the time of reporting, the price of Bitcoin (BTC) was $99,536.89.