Bitcoin Slides Below $100,000 as Federal Reserve's Powell Rejects Bitcoin as Reserve Asset

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In a sharp market downturn, Bitcoin's price slipped below the $100,000 mark on Monday, a significant psychological and technical level for the world's largest cryptocurrency. The drop comes amid Federal Reserve Chair Jerome Powell's public rejection of Bitcoin as a viable reserve currency, intensifying bearish sentiment in the market.




Bitcoin's Slide Below $100,000

Bitcoin, which had been trading above $100,000 for weeks, saw a swift decline of nearly 8% within 24 hours, falling to $96,500 during early trading sessions. Analysts attribute the plunge to a combination of technical sell-offs and mounting concerns over regulatory resistance.

The market dip affected not only Bitcoin but the broader cryptocurrency market, with major altcoins such as Ethereum and Binance Coin also experiencing notable losses.

Powell Rejects Bitcoin as Reserve Asset

Federal Reserve Chair Jerome Powell, speaking at a financial policy summit, dismissed the idea of Bitcoin serving as a reserve currency for the United States. Powell reiterated his concerns about Bitcoin's volatility and lack of intrinsic value, asserting that the U.S. dollar remains the most reliable and stable reserve currency globally.

"Bitcoin is a speculative asset, not a currency that can sustain global reserves," Powell stated. "The Federal Reserve will continue to focus on improving the efficiency and security of the dollar while monitoring digital currency developments."

Market Reaction

Powell's remarks sent ripples through the cryptocurrency community, reigniting debates about Bitcoin's long-term utility and acceptance among institutional players. Market sentiment has turned cautious as traders weigh the implications of Powell's stance.

Crypto enthusiasts, however, argue that Bitcoin's decentralized nature and deflationary characteristics make it a strong contender for a hedge against inflation and traditional financial systems.

What’s Next for Bitcoin?

Despite the setback, many crypto analysts believe Bitcoin's long-term outlook remains bullish, driven by increasing adoption among retail and institutional investors. Some predict that the current dip might attract buyers looking to "buy the dip" at lower levels.

However, market experts warn that Bitcoin's next moves could depend heavily on macroeconomic factors, including Federal Reserve policies and global regulatory developments.

As Bitcoin navigates this volatile phase, all eyes remain on whether it can reclaim the $100,000 mark or if further downward pressure will drive the cryptocurrency to lower support levels.

Read more:DIIs Net Sell Rs 732 Crore in Shares, FIIs Net Buy Rs 2,235 Crore

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