Bitcoin’s price has hit a critical juncture, with the $100K mark proving pivotal as market sentiment takes a hit. According to data from Cointelegraph, Bitcoin saw a modest 2% price increase by the morning of December 19, cautiously recovering from a recent pullback. This recovery comes after a rough blow from the U.S. Federal Reserve, which caused Bitcoin and other risk assets to tumble.
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Fed’s Hawkish Stance Halts Bitcoin Bull Run
The market took a hit after U.S. Federal Reserve Chair Jerome Powell’s cautious remarks on interest rate cuts, leading to a broader sell-off. Powell mentioned that the Fed’s “policy stance is now significantly less restrictive,” signaling that the central bank may hold back on future rate cuts. This sentiment was echoed in the market, with both the S&P 500 and Nasdaq 100 dropping nearly 3%, according to Cointelegraph.
Bitcoin Traders Wary of January Pullback
Looking ahead, some Bitcoin traders, like Mark Cullen, are predicting a larger pullback, especially if Bitcoin fails to hold above $100K. In a post on X, Cullen warned of a potential “larger Bitcoin pullback” in January, despite the current upward trend. However, others, like trader Skew, remain cautiously optimistic, noting that Bitcoin’s recovery could still hold steady if demand stays strong above the $101,500 level.
At the time of writing, Bitcoin is sitting at $99,851.14.
