Bitcoin Price Drops Following Fed Chair's Remarks

Bitcoin's price fell nearly 3% following Federal Reserve Chair Jerome Powell's speech on November 14, where he suggested that rate cuts may not be imminent, contrary to market expectations. The cryptocurrency dropped to $86,979 before rebounding slightly to $88,100. Powell emphasized that the economy remains strong, which allows for a cautious approach to interest rate policies, with the next decision expected on December 18. The market's anticipation of quicker rate cuts was tempered, with the odds of a 25-basis-point cut dropping to 59%. Analysts noted that while the short-term outlook for Bitcoin is impacted by these developments, the medium to long-term prospects remain positive despite ongoing market volatility. Additionally, recent inflation data showed a slight increase, further reinforcing the Fed's reluctance to alter rates hastily.