The cryptocurrency market experienced significant volatility this week, with the total capitalization dropping by over $300 billion due to a Bitcoin price rollercoaster and declines in most altcoins. The market was initially optimistic ahead of the US Federal Reserve’s meeting, hoping for a continued easing of interest rates.
However, when the Fed announced a potential slowdown in rate cuts and Chairman Jerome Powell mentioned that the central bank cannot hold Bitcoin due to legal restrictions, investors panicked and sold off their digital assets en masse. As a result, Bitcoin fell below $100,000, causing over $1.3 billion worth of liquidated positions across the cryptocurrency market on Friday alone.
While some speculate if this marks the end of the bull run, it’s crucial to maintain perspective and monitor broader trends. Notable events include MicroStrategy’s latest Bitcoin purchase, Ripple’s stablecoin launch, and record accumulation by Ethereum whales.
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