Bitcoin suffers biggest drop since September as Fed signals slower rate cuts

Bitcoin posted its biggest drop in more than three months, falling to around the key $100,000 level, as speculative investments generally retreated after the Federal Reserve signaled more caution about future rate cuts. The Fed meeting results should not surprise investors who have been concerned about "recent continued higher U.S. inflation and activity data," Tony Sycamore, market analyst at IG Australia Pty, wrote in a report. "However, it has served as a catalyst to wash out some of the speculative excesses that have flowed into risk assets such as stocks and Bitcoin after the U.S. election." Since the November 5 election, Bitcoin prices have risen 50%, hitting an all-time high of $108,316 earlier this week. Paul Veradittakit, managing partner at Pantera Capital, said that "all signs point to a bottom and a good outlook for Bitcoin," even if some traders were disappointed with the Fed meeting and took profits. (Bloomberg)