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Bitcoin Dips Below $98K While CoinDesk 20 Plunges 10% Amid Fed-Spurred Rout; SOL Surrenders Post-Election Rally

Author: Content Editor
Crypto asset prices experienced a selloff on Thursday following Federal Reserve Chair Jerome Powell's disappointing comments on U.S. interest rate cut expectations for next year. Bitcoin attempted to bounce back above $100,000 but quickly slid to the low-$97,000s. Altcoins fared worse, with Ethereum's ether dipping 10.8% below $3,500 and other coins experiencing losses of 15%-20%. Over $1.2 billion worth of leveraged crypto derivatives trading positions were liquidated in the past 24 hours, with over $1 billion of those being long positions. The selloff was triggered by the Fed's projection of slower rate cuts for next year and rising inflation expectations. The U.S. dollar index surged above 108, its strongest level since November 2022, and 10-year U.S. Treasury yields rose sharply. Some analysts believe the pullback is a healthy correction and that year-end selloffs for tax purposes may also be a contributing factor.

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