Fed pushes Bitcoin back down

Federal Reserve Chairman Jay Powell had good news and bad news for the markets. Although he did promise to lower the interest rates by 25 basis points (as anticipated), he was still unsure whether this would also be the case in December. As a result, Bitcoin fell back below $110,000 just as institutional investors reshuffled their portfolios and built in some security.

Powell likely doesn’t appreciate that President Donald Trump’s Republican Party is already eagerly anticipating the departure of the Federal Reserve chairman next year (in May 2026). Scott Bessent, a true Trump fan, is being considered as his successor.

Stimulus

However, analysts believe Bessent’s appointment would spell the end of the Federal Reserve’s independence, as he’s expected to consistently do what Trump wants (in other words an era of ultralow interest rates to boost stock markets).

Because Jay Powell refused to confirm another rate cut before the end of the year, investors are building in some security, as a Christmas rally now seems less certain.

Bitcoin and other major cryptocurrencies seemed to be the first victims of Powell’s statements. The largest digital currency, still considered a very risky investment, immediately fell below $110,000.

Yet, there were still plenty of buyers, so a further decline seems unlikely. Nevertheless, crypto needs new momentum to reach new record highs.