The statement from the White House has caused BTC to fall below 100,000 USD.

Source: BTCHaber Original Title: White House statement causes BTC to drop below 100,000 dollars Original Link:

Uncertainty in US Economic Data Triggers Market Sell-off

Negative news from the US economy has triggered a massive sell-off in the stock and cryptocurrency markets, with Bitcoin being dragged below the psychological threshold of $100,000.

The price of the world's largest cryptocurrency BTC, measured by market capitalization, reached $97,000, while major crypto assets saw a deeper decline. The price of the cryptocurrency Ether on the Ethereum network fell back to $3,111.

Federal Reserve officials frequently release hawkish signals

Market volatility primarily stems from the hawkish remarks of officials from the U.S. central bank (Federal Reserve), who are cautious about interest rate cuts before the end of the year. San Francisco Fed President Mary Daly advocated that no clear decision will be made at the December meeting and described the policy stance as neutral. Boston Fed President Susan Collins emphasized the Fed's 2% inflation target, indicating that interest rates should remain at current levels for an extended period.

Policy Signals Driven by Data

Minneapolis Federal Reserve Chairman Neel Kashkari has taken a tougher stance, stating that the Federal Reserve does not support the recent interest rate cuts and is taking a wait-and-see approach to the December meeting. Kashkari pointed out that at the meeting on December 9-10, “there may be reasons to cut rates based on the data, as well as reasons to keep rates unchanged.”

The White House Statement Breaks Market Expectations

However, the comments made by Federal Reserve officials based on data have become ineffective due to the 45-day shutdown of the U.S. federal government. The federal government recently reopened after Democrats and Republicans failed to reach an agreement in budget negotiations. White House Press Secretary Karine Jean-Pierre stated at a press conference on Thursday, “Democrats may have caused permanent damage to the federal statistical system, so we believe that the inflation and employment data for October may never be released,” which became the last straw that broke the market.

The US stock market closed lower

After the announcement that data would not be released, the market reacted strongly with a sell-off in anticipation of the Federal Reserve lowering interest rates in December. The prediction from the FedWatch tool shows that the probability of a rate cut in December has dropped from 65% to 50%. The tech index Nasdaq fell by 1.8%, the S&P 500 index fell by 1.6%, and the Dow Jones index fell by 1.65%.

Significant Outflow of Bitcoin Spot ETF

The downward fluctuations in the stock market are directly transmitted to cryptocurrency spot exchange-traded funds (ETFs). The US-listed spot Bitcoin ETF has seen a total outflow of $896 million. According to statistical data, the outflow from Bitcoin ETFs reached $2.6 billion over the past three weeks. The Ethereum ETF, which has recently attracted attention due to bulk buying, has experienced relatively lower losses, amounting to $259 million.

Opportunities for Long-term Investors

Vincent Liu, the investment director of Kronos Research, commented: “The large-scale outflow of funds indicates that the market has entered a risk-averse mode, with institutional investors withdrawing amidst macro noise.” He added: “This flow has suppressed short-term momentum but has not damaged broader structural demand. These outflows align with oversold conditions, opening the door for long-term thinkers.”

Presto Research analyst Min Rong stated: “This indicates a broad reduction in risk across the entire market,” and added: “Investors are shifting from high-risk assets to safe assets. This reflects uncertainty about the direction of Federal Reserve policy and a deterioration in macro sentiment.”