The Federal Reserve's recent interest rate decision has significantly impacted Bitcoin's price, as the central bank cut rates by 25 basis points but maintained a hawkish outlook for future monetary policy. Fed Chair Jerome Powell's comments about persistent inflation pressures and a slower path for future rate cuts have led investors to reassess their positions, moving away from riskier assets like cryptocurrencies. This shift in sentiment has contributed to a broader decline in the crypto market, with Bitcoin experiencing a notable drop. The strengthening US dollar further exacerbates the situation, posing additional macroeconomic risks for Bitcoin and other digital assets.
The 2x Bitcoin Strategy ETF (BITX) has been affected by these developments, with its price falling 10.91% to $62.85 as of 4:00 PM on Wednesday, December 18.