Bitcoin's price dropped by 4.6% to $101,300 following the Federal Reserve's announcement of a 25 basis point rate cut and a hawkish outlook for 2025.

In contrast, major U.S. stock indices performed well, with the Dow Jones Industrial Average rising over 0.8%, while the S&P 500 and Nasdaq Composite increased by approximately 0.9% and more than 1%, respectively.

Asian shares remained near three-month lows as investors awaited critical U.S. inflation data that could influence market expectations.

Despite the current market volatility, there is optimism that cryptocurrencies will recover, supported by their increasing legitimacy and popularity among investors.

Traders are actively seeking high-yielding crypto assets, with recommendations to explore tokens associated with AI-powered blockchain systems, such as AI16Z and VIRTUAL.

Analysts have noted a bullish trend among long-term Bitcoin holders, who are positioning themselves for future gains despite recent price fluctuations.

Furthermore, Bitcoin's ability to maintain a price above $100,000, despite volatility, suggests underlying market strength.

If upward pressure continues, there is potential for a short squeeze that could push Bitcoin prices above $110,000.

Glassnode analysts reported that the proportion of wealth held by new investors has not yet reached levels seen during previous all-time high cycles, indicating that the market may not be in a euphoric state.

In the housing market, there has been a slight increase in sales of previously occupied homes, offering some optimism for the sector.

Overall, the market remains tense, with continued volatility expected in the near future as investors navigate these uncertain conditions.