Article Summary

**Bitcoin Experiences Sharp Volatility Following Fed Rate Decision and Powell's Hawkish Stance** Bitcoin price crashed to $109,000 before staging a remarkable recovery after Federal Reserve Chair Jerome Powell's latest monetary policy announcement. The leading cryptocurrency faced intense selling pressure when the Fed delivered a 0.25% interest rate cut but Powell signaled uncertainty about future rate reductions in 2024. The dramatic Bitcoin price movement highlights the cryptocurrency market's sensitivity to Federal Reserve policy decisions and macroeconomic factors. Powell's neutral stance on additional rate cuts created uncertainty among crypto investors, triggering significant blockchain asset volatility across the digital currency ecosystem. This Bitcoin crash and subsequent rebound demonstrates the ongoing correlation between traditional monetary policy and decentralized finance (DeFi) markets. Cryptocurrency traders closely monitor Fed decisions as interest rate changes directly impact institutional investment flows into Bitcoin and other digital assets. The $109,000 support level proved crucial for Bitcoin's technical recovery, suggesting strong underlying demand despite macroeconomic headwinds. Market analysts expect continued cryptocurrency volatility as investors digest Powell's hawkish pivot and reassess Bitcoin's role as an inflation hedge in the current monetary environment.