Powell's Statement Triggers Crypto Market Decline
The crypto market experienced a significant decline on Thursday, with the global market capitalization dropping by approximately 3% to $3.78 trillion. Bitcoin (BTC) fell nearly 2.5% below $108,000, while Ethereum (ETH) fell 3.4% to around $3,800. This decline was triggered by Federal Reserve Chairman Jerome Powell's statement indicating that a December interest rate cut was not yet certain, dampening market expectations for looser monetary policy.
Furthermore, despite the meeting between US President Donald Trump and Chinese President Xi Jinping resulting in a trade deal that reduced tariff barriers, the crypto market remained depressed. Investors appeared to be more focused on monetary policy uncertainty and potential global economic risks than on positive developments in US-China trade relations.
Despite the short-term pressure, the long-term outlook for the crypto market remains positive. A report from Future Market Insights indicates that the crypto market is expected to grow from $3.7 trillion in 2025 to $12.1 trillion in 2035, at a compound annual growth rate (CAGR) of 12.6%. This growth is driven by increasing institutional adoption and clearer regulations.
Source: Newsmaker.id