12/18

BITX Plummets 12.3% as Fed's Rate Decision Hits Bitcoin Hard

The 2x Bitcoin Strategy ETF (BITX) closed down 12.3% to $61.87 on December 18, as Bitcoin's price fell 4.66% to $101,198.04 following the Federal Reserve's interest rate decision. The Fed cut rates by 25 basis points but signaled a slower pace of future cuts, leading to a reassessment of riskier assets like cryptocurrencies. Fed Chair Jerome Powell's hawkish comments about persistent inflation pressures and a less dovish outlook for 2025 have contributed to the decline. The strengthening US dollar further exacerbates the situation, posing additional macroeconomic risks for Bitcoin. The broader crypto market mirrored Bitcoin's decline, with major altcoins experiencing even steeper drops.