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Bitcoin tested the $100,000 mark after the Fed triggered the coin's worst drop since September. The Fed's signal to cut rates sent tremors through markets, including the crypto market.The world's largest digital asset suffered losses as volatility increased. Bitcoin briefly dipped below $100,000 as the Federal Reserve's cautious outlook for interest rate cuts rates have damaged speculative investments.On Thursday, December 19, Bitcoin hit $98,760, about $10,000 below the record high set earlier this week, before once again reaching six figures level.Fed officials cut borrowing costs for a third straight time but scaled back the number of cuts they expect in 2025.Fed Chairman Jerome Powell said more progress in fighting inflation was needed before monetary policy could be eased further.

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