Bitcoin falls below $88,500, gold hits a new high of 5600 ounces then pulls back, hawkish Fed comments and new chair candidate keep the market on hold

Bitcoin fell to 87,200 in the early morning and then rebounded to break through the $89,000 level, indicating strong short-term support and a consolidation trend upward. However, Ethereum’s large whale in this wave sold 10,000 ETH at this time, taking profits and exiting with a million dollars.
(Background recap: Tom Lee’s prediction: Ethereum will surge to $9,000 early next year, and Bitcoin will reach $200,000 by 2026)
(Additional background: The turning point of cryptocurrencies: In 2026, the rules of the game will be completely changed)

The Federal Reserve announced news this morning (29) that impacted market expectations. Bitcoin saw a large red candle after the Fed news, briefly falling below $88,500, with the current price at $88,677. Ethereum also dropped below the $3,000 level, currently at $2,989. The market is digesting the changes brought by monetary policy. Gold, which previously reached a new high of $5,600, retreated to around $5,500 after the Fed announcement, currently at $5,517, indicating market expectations are adjusting downward.

What did the Federal Reserve say? Uncertain factors?

Current Chair Powell mainly spoke about market expectation management, focusing on “not guaranteeing rate cuts,” which is akin to maintaining the independence of the Federal Reserve and showing a different stance from the Trump administration. However, Powell also emphasized that current data makes it difficult to draw restrictive policy conclusions, and he did not comment on whether the dollar is weak.

Further reading: Powell’s press conference signals a “cautious hawkish” stance: a stable economy with slightly high inflation, currently not rushing to cut rates

At the same time, the next Federal Reserve chair candidate has become a source of uncertainty. As the transition approaches, U.S. Treasury Secretary Yellen also stated that a new Fed chair will be announced within a week, with transition preparations scheduled for February and March. Due to the undecided candidate, the market may further adopt a conservative and cautious stance regarding whether future monetary policy will continue under Powell.