Crypto Market News With BingX December 19, 2024

Join the community of BingX The price of Bitcoin and the crypto market in general have dropped sharply after the US Federal Reserve (Fed) issued a hawkish forecast on inflation in 2025. Bitcoin and the crypto market fell in price when the Fed announced a 25 basis point cut in the policy interest rate and hinted that the number of interest rate cuts in 2025 would be less than initially expected. After the press conference of Fed Chairman Jerome Powell following the interest rate cut, the price of Bitcoin fell 4.6%, Ether lost 5.96%. Although the market had previously forecast a 0.25% cut, which is usually in line with the expected price increase of many traders, Powell's statement that there would only be two more interest rate cuts in 2025 came as a surprise to many. Furthermore, the outlook that some traders saw as "hawkish" was further reinforced when the Fed committee raised its 2025 inflation forecast from 2.1% to 2.5%. BingX Bitcoin Chart

BingX Bitcoin Chart 1D on 19/12/2024 | Source: TradingView & BingX

The slight change in the Fed's outlook is actually to reflect the upcoming policies of the new administration, which is expected to impose tariffs on imported goods, deport millions of undocumented workers, and implement economic policies that could expand the budget deficit. In the press conference, Chairman Jerome Powell emphasized that the Fed's policy realignment reflects the central bank's readiness to adjust its policies to meet the needs of the US economy. Regarding the short-term forecast for Bitcoin prices, crypto analyst Skew commented that the BTC price drop has "released positions" in both directions, with long positions being liquidated and short positions being closed with profits. The price of Bitcoin has dropped to the support zone of $98,000 - $100,000, and the analyst believes that regaining the price range of $100,000 - $101,400 through spot trading is necessary before the daily candle closes. Currently, the support level for Bitcoin is at $99,000, while the resistance level is at $103,500.

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