Bitcoin tumbled to an intraday low of $99,997 on Wednesday, falling below the $100,000 threshold as the broader cryptocurrency market lost 5.74% in 24 hours. The sell-off was triggered by hawkish signals from the Federal Reserve's FOMC meeting, which indicated a slower pace of rate cuts in 2025, denting risk appetite across assets.
Bitcoin's Rollercoaster Week: From All-Time High to Sub-$100K
Just a day earlier, Bitcoin had surged to an all-time high of $108,364. But by Wednesday afternoon, prices slid into the $105K range. After the FOMC decision, Bitcoin accelerated its decline, briefly dipping below $100,000 to hit $99,997. At 8 p.m. EST, it traded at $100,563, down 4.8% against the U.S. dollar. Ethereum (ETH) dropped 5.5%, reflecting broad weakness across major altcoins.
Fed Hawkish Surprise: Slower Rate Cuts Spook Markets
The Federal Reserve held interest rates steady but released a dot plot showing only two rate cuts projected for 2025, down from market expectations of four. Chair Jerome Powell emphasized that inflation remains sticky, suggesting tighter monetary policy will persist. This unexpected hawkish outlook caused a sharp repricing of risk assets, with cryptocurrencies leading the decline. Many traders who had priced in continued liquidity support were caught off guard, triggering a wave of sell orders.
Meme Coins and Leveraged Longs Hit Hard; $671.5 Million in Liquidations
Meme coins were among the worst performers. Peanut the Squirrel (PNUT) crashed 19.24%, while Popcat (POPCAT) fell 18.80%. Other notable losers include Fantom (FTM) down 12.52%, THORChain (RUNE) losing 12.47%, and Theta Network (THETA) dropping 12.33%. The derivatives market saw $671.5 million in forced liquidations within 24 hours, predominantly long positions in BTC, ETH, XRP, DOGE, SOL, and LTC, according to Coinglass data.
Trading Volume Surges 31% as Market Sentiment Fragile
Despite the price decline, global crypto trading volume jumped 31% to $248.41 billion in a single day, led by Tether (USDT), Bitcoin (BTC), and Ethereum (ETH). The latest downturn serves as a stark reminder of how fragile the bull market euphoria can be: any hint of macroeconomic change can trigger violent volatility. As Bitcoin recovers above $100,000, the market response highlights the pull of external forces on investor sentiment. Meme coins and leveraged positions bore the brunt of the pain, underscoring the rollercoaster nature of this market cycle.