- Fed chair Jerome Powell cast a hawkish tone on 2025, spooking investors who were enjoying big rallies.
- Bitcoin dropped 8% to $92,000, while XRP plunged 13%. Both have rebounded.
- Still, worries are mounting as liquidity thins over the holidays.
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The Federal Reserve’s hawkish outlook for 2025 spooked investors.
Cryptocurrencies were hit hardest. Bitcoin plummeted double-digits overnight, although it has since recovered. It is now down 2.5% to $97,400.
Ethereum plunged a whopping 12%, while XRP and Solana shed 10% and 12% respectively. Most digital assets have erased their earlier losses.
The plunge came from Powell’s hawkish stance on further cuts for 2025. Investors were banking on four cuts next year.
The aggressive tone they outlined caught traders off guard — and they didn’t wait to react.
Even though investors had anticipated a 0.25% rate…
