Bitcoin Slips Under $96K, CoinDesk 20 Sheds 10% Amid Fed-Induced Market Turmoil; SOL Retreats After Election Rally

Crypto Market Plunges as Powell’s Hawkish Tone Sparks Broad Selloff; Bitcoin Slips Below $96K, Altcoins Face Double-Digit Losses

Federal Reserve Chair Jerome Powell’s firm stance on delaying aggressive interest rate cuts sent tremors across global financial markets, triggering a sharp decline in cryptocurrency prices alongside traditional assets.

Bitcoin (BTC) faced intense selling pressure, falling below the key $100,000 threshold during U.S. trading hours on Thursday. After briefly stabilizing near $98,000, BTC slid further into the low-$97,000 range before plunging under $96,000, reflecting a 4.8% decline over the past 24 hours.

Altcoins suffered even steeper losses, with the CoinDesk 20 Index plummeting over 10% during the same period. Ethereum (ETH) tumbled 10.8%, falling below $3,500, while assets like Cardano’s ADA, Chainlink’s LINK, Aptos’ APT, Avalanche’s AVAX, and Dogecoin’s DOGE recorded losses between 15% and 20%. Solana’s SOL nosedived by 26%, wiping out nearly all gains from its post-election rally and hitting its weakest price since early November.

CoinGlass data revealed that nearly $1.2 billion in leveraged cryptocurrency derivatives positions were liquidated within the past 24 hours, with long positions—bets on rising prices—comprising over $1 billion of the total liquidations.

Traditional stock markets also struggled to recover. The S&P 500 and Nasdaq managed modest gains of 0.5%, but optimism faded as trading progressed, reflecting ongoing uncertainty.

Investor sentiment had been bolstered in recent weeks by expectations of pro-crypto policies tied to a potential Trump presidency. However, Powell’s hawkish commentary and the Federal Reserve’s cautious approach to rate cuts jolted market confidence, sparking a selloff not just in cryptocurrencies but also in equities and gold.

Simultaneously, the U.S. Dollar Index (DXY) surged past 108, hitting its highest level since November 2022, while 10-year Treasury yields climbed above 4.6%, their highest mark since May.

“The crypto market was already showing signs of exhaustion after Bitcoin’s rapid ascent past $100,000,” said Joel Kruger, market strategist at LMAX Group. “Powell’s hawkish stance acted as the trigger for this widespread correction.”

Despite the selloff, Azeem Khan, co-founder and COO of Morph, maintained a positive outlook. “Zooming out, this correction appears relatively healthy in the context of the market’s broader growth trajectory,” Khan noted. He also highlighted the seasonal trend of year-end selloffs, where investors realize losses to offset taxable gains.

Market participants now await further economic data and Federal Reserve signals for potential stabilization cues in both traditional and digital asset markets.