Bitcoin (BTC) has fallen below the $100,000 mark, now trading at $95,543.06, after a 9.02% decline over the past week, according to CoinMarketCap. The CMC Fear and Greed Index has shifted from extreme greed to neutral sentiment, reflecting heightened caution among market participants.

The decline follows the Federal Reserve's decision to lower interest rates by 25 basis points earlier this week, coupled with hawkish comments from Fed Chair Jerome Powell. Powell signaled a slowdown in the pace of rate cuts next year, which sent risk assets, including cryptocurrencies, tumbling.Data from SoSo Value reveal spot Bitcoin exchange-traded funds (ETFs) experienced a historic single-day outflow of $671.9 million, breaking a 15-day streak of inflows. The outflows coincided with Bitcoin’s price dropping below $100,000.

Despite this downturn, cryptocurrency miners and major holders, such as MicroStrategy, continue to adopt Bitcoin accumulation strategies. MicroStrategy, the largest corporate holder of Bitcoin, is set to join the Nasdaq 100 index next week.According to Markus Thielen of 10x Research, Bitcoin and the broader crypto market remain under pressure despite attempts by Federal Reserve officials to calm markets following Powell’s comments. Thielen noted that Bitcoin’s uptrend line has been broken, with prices rebounding slightly to $93,000 before hitting resistance.

QCP Capital attributed the selloff not only to the Fed's hawkish stance but also to overly bullish market positioning. Persistent inflation and a revised dot plot projecting two rate cuts in 2025, compared to the market’s expectation of three, exacerbated the downturn.

The selloff also paralleled declines in traditional markets, with the Nasdaq dropping 3.56% and the S&P 500 falling 2.95%. Bitcoin saw a sharper decline of 6.13%, reflecting its status as a high-risk asset.Despite the market volatility, Bitcoin spot ETFs saw a weekly net inflow of $449 million from December 16 to December 20, according to SoSo Value. Additionally, BlackRock's Bitcoin ETF, IBIT, reported a significant weekly net inflow of $1.45 billion.