Bitcoin's price experienced a significant downturn, falling to $109,000 on Wednesday afternoon, following signals from Federal Reserve Chair Jerome Powell that additional interest rate cuts might not be forthcoming in December. This immediate reaction saw Bitcoin's price level near $111,000 subsequently. The drop occurred shortly after the central bank had already reduced its benchmark interest rate by 0.25 percentage points, setting a new target range of 3.75%–4%. This rate cut marked the Fed's second such action in 2025, with the previous one occurring in September, ending an extended period of rate holds. The primary objective of this policy shift was to decrease borrowing costs and stimulate economic activity.

However, Powell's comments, emphasizing that further rate cuts were not guaranteed for the remainder of the year, triggered a selling spree across various risk assets, including Bitcoin. Prior to the announcement, Bitcoin had been trading close to $116,000 on Monday, dipping briefly below $111,000 early Tuesday. The price saw a temporary rebound upon the news of the rate cut itself, but quickly slid again as Powell delivered his cautious remarks. According to Bitcoin Magazine Pro data, Bitcoin is currently trading near $111,200. The broader cryptocurrency market mirrored Bitcoin's volatile reaction during Powell's press conference.

During his address, Jerome Powell also indicated that inflation, when excluding the impact of tariffs, was