The White House statement caused BTC to fall below 100,000 dollars again.

Source: BTCHaber Original Title: White House statement causes BTC to drop below 100,000 dollars Original Link: https://www.btchaber.com/beyaz-saray-aciklamasiyla-btc-tekrar-100-bin-dolarin-altinda/ Negative news from the US economy has triggered a significant sell-off in the stock and cryptocurrency markets, dragging Bitcoin below the psychological threshold of $100,000.

By market capitalization, the price of the world's largest cryptocurrency BTC has fallen to $97,000, while the decline of other major cryptocurrencies is even steeper. The price of Ether, the cryptocurrency of the Ethereum network, has dropped to $3,111.

Fed officials send hawkish signals

Market volatility primarily stems from the hawkish signals from Federal Reserve officials, who expect interest rate cuts by the end of the year. San Francisco Federal Reserve Bank President Mary Daly argued that there will be no clear decision at the December meeting and described the policy stance as neutral. Boston Federal Reserve Bank President Susan Collins emphasized the Fed's 2% inflation target, stating that she supports keeping interest rates at the current level for some time.

“Data-driven decision making” signal

Neel Kashkari, the president of the Minneapolis Federal Reserve Bank, has taken a tougher stance, declaring that the Federal Reserve does not support the recent rate cuts and remains hesitant ahead of the December meeting. Kashkari stated that at the meeting on December 9-10, “there could be reasons to provide rate cuts or keep rates unchanged based on the data.”

White House: “Inflation and employment data will not be released”

However, the remarks made by Federal Reserve officials about taking action based on data have become invalid due to the 45-day shutdown of the U.S. federal government. The federal government reopened last week after Democrats and Republicans failed to reach an agreement in budget negotiations. White House Press Secretary Karoline Leavitt stated at a press conference on Thursday, “Democrats may have caused permanent damage to the federal statistical system, and we believe that the inflation and employment data for October may never be released,” which became the last straw for the camel.

US indices closed lower

After the announcement that data would not be released, the market expecting a rate cut in December reacted with strong selling. According to the predictions from the FedWatch tool, the probability of the Federal Reserve cutting rates in December dropped from 65% to 50%. The Nasdaq Composite Index fell by 1.8%, the S&P 500 Index dropped by 1.6%, and the Dow Jones Industrial Average decreased by 1.65%.

Bitcoin ETF saw a net outflow of $2.6 billion in the past three weeks

The decline in the stock market is directly reflected in the cryptocurrency spot exchange-traded fund ( ETF ). The total outflow from the U.S. listed spot Bitcoin ETFs amounts to $896 million. According to SoSalue data, the net outflow of Bitcoin ETFs over the past three weeks has reached $2.6 billion. The Ethereum ETF, which has recently become the focus due to large purchases, has seen relatively lower losses of $259 million.

“Creating Opportunities for Long-term Investors”

Vincent Liu, the Director of Investment at Kronos Research, commented that “the large outflows indicate that the market has shifted into a risk-averse mode, with institutional investors retreating amid macro noise.” He added: “This outflow has dampened short-term momentum but has not harmed broader structural demand. These outflows are consistent with oversold conditions, opening the door for opportunists thinking long-term.”

Min Jung, a research assistant at Presto Research, stated, “This indicates a broad reduction in risk across the entire market,” and added: “Investors are pulling capital out of high-risk assets and moving towards safe havens. This reflects uncertainty regarding the Federal Reserve's path and a deteriorating macro sentiment.”