FED Uncertainty Drove Bitcoin Price Below 103 Thousand Dollars

The cryptocurrency market experienced a significant decline as investors increased profit sales and expectations for an interest rate cut in December weakened. In the middle of the week, the price of Bitcoin (BTC) dropped by %3, falling to 103,222 dollars. Ethereum (ETH) saw a %4.7 loss, dropping to 3,434 dollars, while XRP fell by %5.3 to 2.4 dollars and Solana (SOL) declined by %8.85, reaching 154.76 dollars.

During the day, Bitcoin briefly fell below 103,000 dollars, hitting a low of 102,600 dollars. This drop came after the cryptocurrency had risen from 101,500 dollars to 106,600 dollars at the beginning of the month. Vincent Liu, Director of Research at Kronos, stated that the primary reason for the decline was “profit sales and long position liquidations following the inability to breach the 107,000 dollar resistance.” Liu noted that while the Senate's approval of the bill facilitating the government's reopening created a short-term relief, it was not sufficient to balance the selling pressure.

The biggest expectation for crypto investors is an interest rate cut from the U.S. Federal Reserve (Fed) in December. However, Fed Chairman Jerome Powell indicated that a cut is “not certain.” The Wall Street Journal pointed out that there are significant disagreements among central bank members regarding this issue. According to CME FedWatch Tool data, the probability of an interest rate cut in the 9-10 December meeting stands at %66.9. Presto Research analyst Min Jung emphasized that any potential cut may not create a significant jump in prices: “A confirmed cut could stimulate risk appetite, but the markets have largely priced this scenario in already.”

According to market analysts, the critical psychological support level for Bitcoin continues to be 100,000 dollars. Therefore, investors face a risk of more significant selling pressure if a closure occurs below this level.