The Reason Behind Bitcoin’s $8,000 Drop in Just a Few Hours

The US Federal Reserve (FED) has just made its third consecutive interest rate cut, this time by 25 basis points. However, unlike the previous times in the past few months, the cryptocurrency market, including Bitcoin, immediately fell after this announcement.

Bitcoin plummeted, hitting a multi-day low of $100,000, down from $108,300 in just one day, a drop of more than $8,000. Altcoins, which are more volatile, suffered even heavier losses.

The cause may lie in the statement of FED Chairman Jerome Powell. He hinted that the central bank may pause its interest rate cut policy, based on worrying CPI data released in October and November.

Despite the 25 basis point rate cut this time, the prospect of interest rates RISING again in 2025 is becoming clearer. However, a positive sign emerged as “the market is in a buying mood on dips.”

Read more: Google Searches for XRP Explode

Analyst Skew noted that “it won’t take long” for the market to reverse, benefiting the bulls. Meanwhile, some other analysts noted that there is still an unfilled “gap” in the CME Group Bitcoin futures market, at around $102,000. Trader MoGambit believes that BTC could fill this gap at the upcoming FOMC meeting.

GalaxyTrading also shared an optimistic view: “While not all gaps have been filled historically, it is certainly possible.” This forecast suggests hope that Bitcoin will soon recover and return to a growth trend.