'FOMC Shock'... Bitcoin Surrenders the $100,000 Mark

The leading cryptocurrency, Bitcoin (BTC), has surrendered the $100,000 mark after six days.

As of 11:10 AM on the 19th, Bitcoin is recording a sharp drop of 5.44% from the previous day, standing at $99,615 according to CoinMarketCap.

It is interpreted that the investment sentiment towards risky assets, including Bitcoin, has significantly weakened as a hawkish message suggesting a moderation in the pace of rate cuts was released by the Federal Reserve (Fed) during the Federal Open Market Committee (FOMC) held overnight.

On the 18th (local time), the Fed lowered the target range for the benchmark interest rate from 4.50~4.75% to 4.25~4.50% at the regular FOMC meeting. This marks the third consecutive rate cut following a 0.50% reduction in September and another in November.

However, more attention was drawn to the significantly changed dot plot (a chart showing FOMC members' projections for future interest rate levels) than the rate cut itself during the meeting.

According to the new dot plot, Fed members presented a year-end interest rate forecast of 3.9% for next year. This is 0.5% higher than the previous September forecast of 3.4%. Considering the interest rate level, it seems to indicate a limitation of two rate cuts next year. The Fed judged that there is no need to quickly lower the benchmark interest rate, considering the employment trend and the possibility of a resurgence in inflation.

Jerome Powell, the Fed Chair, said, "The statement on the direction of monetary policy announced today signaled that it is appropriate to slow the pace of additional rate adjustments."