Bitcoin has seen its price drop below the $100,000 mark, a level that was thought to be a psychological support point in the cryptocurrency market. This significant dip was triggered by a combination of macroeconomic announcements and internal market dynamics. Market Update:
Bitcoin (BTC) : Currently trading at approximately $98,900, down nearly -5% from its recent peak of $103,900.
Ethereum (ETH) : Follows suit with a -3.89% decrease, now at around $3,680.
Market Cap : The total cryptocurrency market cap has fallen by -4.53% to $3.68 trillion, with Bitcoin’s dominance at 54.43%.
The catalyst for this crash appears to be Federal Reserve Chairman Jerome Powell’s recent comments, indicating a more hawkish stance on monetary policy. Powell hinted at fewer rate cuts in 2025 than previously anticipated, which has spooked investors across various asset classes, including cryptocurrencies. This uncertainty has led to a reevaluation of risk, with many investors pulling back from high-volatility assets like Bitcoin. Simultaneously, the crypto market has been rocked by over $860 million in liquidations, predominantly affecting Bitcoin and Ethereum futures. This mass liquidation event has been one of the largest on record, leading to a sharp sell-off as leveraged positions were forced to close, further pushing down the price. While some see this as an opportunity to buy at lower prices, the immediate outlook remains clouded by the lack of clear regulatory pathways and ongoing geopolitical tensions. The market will closely watch for any signs of recovery or further drops, with many eyes on whether Bitcoin can quickly bounce back above the $100,000 threshold or if this marks the beginning of a more prolonged correction.
