Bitcoin drops for the first time in four days after Fed’s disappointing rate cut

Bitcoin fell sharply for the first time in four days as markets reacted to the Federal Reserve’s latest rate decision. The apex crypto tumbled by as much as 5.3%, dropping to $100,752 after briefly soaring past $108,000 earlier this week in a record-breaking rally. Traders, spooked by the slower-than-expected pace of easing, pulled back speculative bets, hitting Bitcoin and other riskier assets. Fed signals fewer cuts The Fed’s quarter-point rate cut on Wednesday was widely expected, but its forecast left markets cold. Officials projected the benchmark rate to fall to 3.75-4% in 2025, down from an earlier prediction of a full percentage-point reduction. Morgan Stanley described the updated outlook as “much more hawkish than we anticipated.” This cautious approach suggests the Fed is prioritizing inflation control over aggressive stimulus. Fed Chair Jay Powell admitted that the December decision was a “closer call” than previous ones. He said inflation was moving “sideways,” while risks to the labor market had “diminished.” These comments signaled that the central bank might adopt a more restrained pace of easing moving forward. The policy change sent shockwaves through global markets. U.S. Treasury yields climbed, with the two-year note—closely tied to Fed policy—rising 0.08 percentage points to 4.33%. The dollar strengthened by 1% against a basket of major currencies, while Wall Street’s S&P 500 dropped 1%. Risk assets, including Bitcoin, bore the brunt of this recalibration. A recalibration in monetary policy The Fed’s rate cuts have been framed as part of a broader “recalibration” of monetary policy aimed at curbing inflation. Officials raised their estimate of the neutral rate—one that neither stimulates nor constrains the economy—to 3%, up from 2.5% a year ago. Revised forecasts showed the Fed expects core inflation, which excludes food and energy prices, to reach 2.5% in 2025 and 2.2% in 2026. These figures are slightly higher than earlier projections. Meanwhile, the unemployment rate is expected to hold steady at 4.3% over the next three years. Markets were already on edge following the September decision, where Fed Governor Michelle Bowman dissented, marking the first internal opposition to a rate cut since 2005. The December move, though expected, came amid continued debate among officials about inflation’s trajectory. The Fed’s preferred inflation gauge, the core personal consumption expenditures price index, rose at an annual rate of 2.8% in October. Powell described this phase as a “new process” in the Fed’s approach, explaining that future rate cuts would require a higher bar for approval. The Fed’s goal remains clear: bring inflation back to 2% without derailing the labor market or broader economy. Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap

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Uniswap Price Bearish Pattern Emerges as Whale Selling Threatens $10 Level

On December 18th, Wednesday, the crypto market witnessed a surge in selling pressure following the U.S. Federal Reserve’s…

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Musk Loves Bitcoin (MUSKBTC) Solana Memecoin to Explode 13,000% Before Exchange Listing, While SHIB, BONK and DOGE Underperform

Musk Loves Bitcoin could turn early investors into multi-millionaires, like Shiba Inu (SHIB) and Dogecoin (DOGE) did. Musk Loves Bitcoin (MUSKBTC), a new Solana memecoin that was launched today, is set to explode over 13,000% in price in the coming days. This is because MUSKBTC is set to soon be listed on numerous crypto exchanges, according to reports. This will give the Solana memecoin exposure to millions of additional investors, who will pour funds into the coin and drive its price up. Currently, Musk Loves Bitcoin can only be purchased via Solana decentralized exchanges, like Jup.ag and Raydium.io, and early investors stand to make huge returns in the coming days. Early investors in SHIB and DOGE made astronomical returns, and Musk Loves Bitcoin could become the next viral memecoin. Musk Loves Bitcoin launched with over $9,000 of liquidity, giving it a unique advantage over the majority of other new memecoins, and early investors could make huge gains. How to Buy To buy Musk Loves Bitcoin on Raydium.io or Jup.ag ahead of the CEX listings, users need to connect their Solflare, MetaMask or Phantom wallet, and swap Solana for Musk Loves Bitcoin by entering its contract address – 35GthqqwTd9HokNVfUzGpjsALCJbeUXXeKeJcrPCZsJB – in the receiving field. If you don’t have one of these wallets already, you can create a new wallet in a few minutes and transfer some Solana to it (which will then be used to buy the memecoin), from an exchange like Coinbase, Binance and many others. In fact, early investors could make returns similar to those who invested in Shiba Inu (SHIB) and Dogecoin (DOGE) before these memecoins went viral and exploded in price. If this happens, a new wave of memecoin millionaires could be created in a matter of weeks – or potentially even sooner. The Solana memecoin craze continues amid larger memecoins, like Shiba Inu (SHIB), Dogecoin (DOGE) and DogWifHat (WIF) trading sideways in recent weeks and losing momentum. This is why many SHIB, DOGE and WIF investors are instead investing in new Solana memecoins, like MUSKBTC. Such memecoins have no utility and no inherent value, but investors looking for high gains have been investing in them due to their potential to rapidly rise in price.

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El Salvador secures IMF deal as Bitcoin acceptance turns voluntary

El Salvador secures IMF deal, adjusting Bitcoin policy to voluntary acceptance, focusing on fiscal reform and economic resilience. The post El Salvador secures IMF deal as Bitcoin acceptance turns voluntary appeared first on Crypto Briefing .

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XRP Price Ready To Run To $11 ATH? Alternative Larger Metrics Show The Answer

A crypto analyst has shared an XRP price chart, analyzing its action on the 4-hour timeframe while pinpointing key metrics of strength that suggest a possible rally. The analyst has predicted that XRP is preparing for a significant run to $11, marking a new All-Time High (ATH). Key Metrics Suggest XRP Price Set For $11 Surge In an X (formerly Twitter) post on Tuesday, prominent crypto analyst Javon Marks shared key observations of XRP’s price behavior, noting signs of strength through crucial metrics and a potential for a significant price rally to a new ATH at $11. The analyst has suggested that XRP shows clear upward momentum, with a sharp increase visible on the presented price chart. Related Reading: Ethereum Price Crash Incoming? Tron’s Justin Sun Unstakes $209 Million ETH From Lido Finance Looking at the chart, XRP has been breaking recent resistance levels and maintaining bullish momentum. XRP’s strongest resistance at $0.5, which lasted for over three years, was broken earlier in November, jumping above $1 following Donald Trump’s victory in the US Presidential elections. Currently, the XRP price is trading above $2.5, underscoring the massive growth surge it has experienced in less than two months. Marks has revealed that he was keeping a close watch on alternative larger-term metrics for the XRP price that signal a potential surge to new ATHs. The volume bars below the price chart indicate steady buying pressure for XRP, with increasing trading volume during upward trends. Recently, the XRP accumulation trend among large holders has increased significantly. Crypto analyst Ali Martinez revealed via a price chart that whales have purchased a staggering 30 million XRP within the last 24 hours. This increased buying activity reflects the growing confidence in XRP, possibly fueled by the market’s bullish sentiment and expectations of a price rally. At the bottom of the XRP chart shared by Marks, the Relative Strength Index (RSI) illustrates a sharp upward curve, signaling the potential for a bull rally. The RSI appears as a fluctuating black line, clearly reflecting rising momentum. If XRP can sustain its current uptrend, it could surpass its current all-time high of $3.84 set during the 2021 bull market, potentially reaching a new high above $11 in this bull cycle. Update On XRP Analysis The XRP price has been persistently attempting to break through the resistance area at $2.5, aiming to reach new highs. Over the past month, XRP has had an impressive performance, recording a whopping 119.5% price increase. Despite being in consolidation, the cryptocurrency continues to exhibit strong growth, with its price climbing nearly 8% in the last seven days as it attempted to break through key resistance levels. Related Reading: Bitcoin Price Moves Similarly To The Elliot Wave Count From 2017, Why Price Can Jump Another 80% Data from CoinMarketCap has revealed that the XRP price is currently trading at $0.252. The cryptocurrency remains the third largest based on market capitalization after Bitcoin and Ethereum. Additionally, XRP has seen a notable increase in its daily trading volume, surging by 53.72% at the time of writing. Featured image created with Dall.E, chart from Tradingview.com

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Fed Won’t Hold Bitcoin or Push for Strategic Reserve, says Jerome Powell

Jerome Powell confirmed the Federal Reserve cannot hold Bitcoin, leaving the decision to Congress. Though some lawmakers and President elect Trump support a U.S. Bitcoin reserve. Powell’s comments caused Bitcoin to drop 5.7%, with other major cryptos also losing value, and the stock market reacted negatively. Powell Says No to U.S. Bitcoin Reserve Jerome Powell Fed Chair has made a point during a press conference that the U.S. central bank is not allowed to hold Bitcoin. He explained that according to the Federal Reserve Act, there are rules about what the bank can own, and Bitcoin is not part of that. He also stated that the Federal Reserve is looking for something other than a law change by leaving the decision to Congress. “We’re not allowed to own bitcoin. The Federal Reserve Act says what we can own, and we’re not looking for a law change. That’s something for Congress to decide, not the Fed.” These statements came after questions about the possibility of the U.S. government building a Bitcoin reserve, similar to how it holds gold. Powell stressed that any decision on the U.S. government holding Bitcoin would be up to Congress and not the Federal Reserve. He clarified that the central bank is interested in something other than getting involved in Bitcoin or changing its laws. Despite Powell’s firm stance, there has been growing interest in Bitcoin as a potential asset for the U.S. government to hold. Trump has supported the idea, suggesting that the U.S. should not fall behind other countries in the global crypto race. Some pro- crypto senators including Senator Cynthia Lummis from Wyoming, have been pushing for this idea. Lummis has even drafted a bill requiring the U.S. Treasury to buy one million Bitcoin over the next five years. President-elect Donald Trump has also supported the idea of the U.S. creating a Bitcoin reserve, saying the U.S. needs to stay ahead of countries like China by embracing digital currencies. Market Reaction to Powell’s comments After Powell’s comments, the cryptocurrency market reacted quickly. Bitcoin dropped to $100,300 which is down about 5.7% over the past 24 hours. By the time of the press release, Bitcoin was trading at $100,740. The cryptocurrency market also fell. Ethereum fell by 6.8%, Binance Coin (BNB) dropped by 4.6%, and Solana (SOL) by 8.1%. Dogecoin (DOGE) performed the least among the top 10 positioned tokens which is dropping by 11% to $0.348. The stock market also equally reacted negatively to Powell’s comments. The S&P 500 closed with a loss of 1.55%, and the Nasdaq 100 dropped by around 2%. These show how market is reacting to the news about government policies, especially when it comes to cryptocurrencies like Bitcoin. Powell’s stance on not supporting a Bitcoin reserve created uncertainty among investors and also, they quickly adjusted their positions by selling. Jerome Powell’s comments made it clear that the Federal Reserve is not interested in holding Bitcoin or supporting the U.S. Bitcoin reserve. The market’s reaction showed how Bitcoin and other cryptocurrencies are dependent from investors and policymakers. A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.

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Pepeto Project Launches Utility-Driven Solutions for Memecoins

SAN FRANCISCO, United States, December 18th, 2024, Chainwire Pepeto: The God of Frogs with Utility and a Vision Unlike other memecoins’ trading-centric approach, Pepeto offers a comprehensive utility-driven ecosystem. Pepeto, known as the God of Frogs, aims to adopt all future memecoins and elevate the sector through its zero-fee cross-chain exchange and bridge technology. Pepeto’s Ecosystem Highlights: Zero-Fee Exchange: A listing platform for

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Ethereum long term holders show conviction with a continued increase in collective balance

IntoTheBlock’s data revealed that long-term holders currently held 110M Ethereum as they continued to increase their collective balances. Santiment’s data, on the other hand, showed that 104 whale wallets with >100K ETH jointly held over 57% of the total supply worth $333.1B. ETH holders exhibited increased faith in the altcoin this year as the group’s overall balances grew steadily despite market volatility. IntoTheBlock’s ETH data summary revealed that 74% of the holders had held the token for more than 1 year, while large holders accounted for 53%. The number of transactions with a value of $100K or greater had a total volume of $65.4B in the last seven days as exchanges recorded a netflow of -$912.97M. The data suggested that most of the ETH supply was aggressively being moved into whale wallets. Long-term ETH holders continue to strengthen their holdings Long-term ETH holders showed conviction this year, with a continued increase in their collective balance. Roughly 110 million $ETH is now held by long-term holders. pic.twitter.com/smh7DZL1of — IntoTheBlock (@intotheblock) December 18, 2024 According to Santiment’s latest data, 104 whale wallets currently hold nearly 58% of all existing ETH tokens. These holdings reached an all-time high, suggesting a positive shift in long-term holder sentiment. These 104 whales reflected increasing confidence among ETH’s largest stakeholders as they continued accumulating despite the token’s ability to hold above $4K. Conversely, mid-level ETH holders (100-100K) dropped to their all-time low supply ratio, accounting for ~33% of the total supply. The broader Ethereum ecosystem generally included a rising number of staking wallets, signalling a bullish long-term outlook. Such sustained accumulation by key stakeholders suggested increased conviction and reduced selling pressure, which aligned with positive market sentiment over time. Crypto analyst Ali Martinez pointed out that ETH’s price movement historically correlated with shifts in long-term holder sentiments. Long-term holders could, therefore, enter the ‘greed phase’ as the current bull cycle suggested a parabolic price surge. These holders were now in the early stages of the ‘belief’ stage, indicating they felt optimistic about ETH’s future price potential. If history repeated itself, this indicated that Ethereum’s major upward movement could still be on the horizon as long-term investor sentiment strengthened. Bitwise predicts ETH’s value will rise significantly in 2025 Juan Leon, senior investment strategist at Bitwise, said that Ethereum stood to benefit from several big trends in 2025. Leon claimed that ETH had positioned itself as the most ‘battle-tested’ smart contract platform, with an 81% share of the tokenization market. He argued that ETH would be the driving force behind the tripling of tokenized funds in 2025. Leon called ETH ‘the comeback kid of 2025’, saying it would likely lead in the $100 trillion tokenized real-world asset market next year. Ethereum was overshadowed by Bitcoin and Solana in 2024. The Bitwise investment strategist noted that Ethereum ETFs had attracted over $2 billion in net inflows over the past 10 days. Farside’s data confirmed a new daily record of $428.5 million in ETH ETF inflows on December 5th. According to the data, Ethereum ETFs saw less than three-digit daily inflows in only three of the 10 trading days Leon considered. Leon estimated that fees generated from RWA-linked activity on ETH could surpass its $2.4 billion YTD fees by more than 40 times in 2025. He attributed Ethereum’s next year’s dominance to its status as the most secure and reliable decentralized smart contract platform. Ethereum’s growth could also be accelerated by regulatory tailwinds and its widely distributed validator network. From Zero to Web3 Pro: Your 90-Day Career Launch Plan

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Metaplanet records first profit in seven years, driven by Bitcoin strategy

Metaplanet, an investment firm based in Tokyo, is expected to record its first consolidated operating profit in seven years as it continues to improve its financial position. The firm claimed that it has shifted its focus to Bitcoin as the leading cryptocurrency, which has been profitable, especially with the current price increases. *Metaplanet Projects First Fiscal Year Operating Profit Since 2017* pic.twitter.com/oYNKOtNatR — Metaplanet Inc. (@Metaplanet_JP) December 18, 2024 Metaplanet expects an operating income of ¥270 million ($1.8 million) for the year ending December 31, which is an improvement from the ¥468 million ($3.1 million) loss it made the previous year. Sales are also forecast to increase at a much faster pace – from ¥261 million ($1.7 million) to ¥890 million ($5.8 million). Bitcoin treasury management powers growth Metaplanet has attributed a lot of its success to its focus on Bitcoin, especially through Bitcoin put options trading. The company has projected that it will earn ¥520 million ($3.4 million) from put options only. Put options allow Bitcoin investors to sell the digital currency at a specific price providing both protection and profit-making chance. Metaplanet stands to benefit from earning premiums on these contracts and, when exercised, receiving more Bitcoin. This has helped it to increase the number of Bitcoins it has and also helped it to generate revenue. The company currently holds 1,142 Bitcoin worth ¥17.6 billion or $119.4 million as of now, and this makes the firm the second largest corporate holder of Bitcoin in Asia. It goes further than simple trading, as the company has announced that it will create a separate “Bitcoin accumulation and management” business. Besides treasury management, Metaplanet has expanded its activities in the Bitcoin sphere. Recently, the company obtained a license to launch a Japanese edition of Bitcoin Magazine, which has become a new player in the digital asset media market. This could open up new income streams since the use of Bitcoin is on the rise in Japan and the rest of the world. The deal was announced in July at the Bitcoin Conference in Nashville, which was attended by the former US President, Donald Trump. Metaplanet is set to officially launch Bitcoin Magazine Japan in the first quarter of 2025. Bitcoin Magazine was launched in 2012 by Buterin and others and is one of the earliest outlets focused on Bitcoin. In a bid to strengthen its position, Metaplanet has offered ¥9.5 billion ($64.5 million) in bonds to increase its Bitcoin reserves. The company intends to use both debt and equity as capital to facilitate the accumulation strategy in the business. Besides Metaplanet, other companies that have been actively accumulating Bitcoin include MicroStrategy. This week only, MicroStrategy acquired 15,350 Bitcoin for about $1.6 billion and now holds 439,000 Bitcoin in its portfolio with a total value of over $46 billion. Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap

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Ohio Follows Pennsylvania, Texas in Pursuing State-Level Bitcoin Reserves

Ohio State Representative Derek Merrin has introduced House Bill 703, known as the Ohio Bitcoin Reserve Act, in a bid to authorize the state treasurer to invest public funds in BTC. The latest initiative is announced as part of Merrin’s broader vision to leverage innovative financial solutions. The legislation provides the framework for Ohio to incorporate Bitcoin into its state treasury portfolio. Ohio Bitcoin Reserve Act Merrin highlighted concerns about the ongoing devaluation of the US dollar, positioning Bitcoin as a strategic reserve asset to preserve state funds’ value and supplement the existing financial framework. While the bill does not mandate the purchase of Bitcoin, it gives the State Treasurer the authority and flexibility to make such investments as part of asset allocation decisions. He stated, “Bitcoin is revolutionizing finance and will reshape world economies. We must have sound money – it’s like digital property rights for everyone who owns it. This legislation sets up the framework for Ohio’s state government to harness the power of Bitcoin to strengthen our state finances.” The bill also anticipates further federal-level efforts, referencing potential proposals from lawmakers like Senator Cynthia Lummis to establish a national Bitcoin reserve under the incoming administration. Supporters like Andrew Burchwell, Executive Director of the Ohio Blockchain Council, also highlighted Bitcoin’s increasing adoption as a reserve asset globally, praising the legislation for positioning Ohio as a leader in this movement. State Bitcoin Reserves Merrin’s proposal to create a Bitcoin reserve positions Ohio alongside other states pursuing similar initiatives. For instance, in Pennsylvania, Republican Reps. Mike Cabell and Aaron Kaufer introduced the “Pennsylvania Bitcoin Strategic Reserve Act” in November. The bill allows the treasury to allocate up to 10% of the state’s $7 billion fund into Bitcoin to hedge against inflation and reduce reliance on traditional investments like bonds and cash reserves. In Texas, Republican Rep. Giovanni Capriglione filed House Bill 1598, establishing a strategic Bitcoin reserve account funded entirely through donations. Unlike Pennsylvania’s approach, the assets in Texas’s reserve would be held for up to five years. The post Ohio Follows Pennsylvania, Texas in Pursuing State-Level Bitcoin Reserves appeared first on CryptoPotato .

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