Yesterday, the cryptocurrency market witnessed a sharp decline following comments from U.S. Federal Reserve Chair Jerome Powell regarding interest rates. Bitcoin attempted to recover above the $100,000 mark but only for a short time before dropping below $97,000, losing 4.8% of its value within 24 hours. Altcoins suffered even heavier losses, with the CoinDesk 20 index falling over 10%, and the price of Ethereum's ether dropping 10.8% below the $3,500 mark. Many other altcoins also recorded declines ranging from 15% to 20%. This price drop led to nearly $1.2 billion in liquidations from leveraged cryptocurrency trading positions.
In traditional markets, U.S. stocks saw only a slight increase after Wednesday's lows, but forecasts from the Fed and Powell's views on inflation contributed to a broad sell-off across markets. Some analysts suggest that the pullback could be seen as a healthy correction after the recent surge in cryptocurrency prices, and year-end tax strategies may be influencing investment behavior.
Bitcoin (BTC) is currently at $96,423 and is likely to experience significant volatility as it approaches critical price levels. According to John Bollinger, the creator of the Bollinger Bands indicator, Bitcoin has crossed the upper boundary of the Bollinger Bands after setting a new all-time high above $108,000. This suggests the possibility of further price increases. Bollinger points out that this phenomenon often leads to prices 'moving' along the upper band, potentially resulting in significant gains.
Many analysts have offered 'ambitious' price predictions for Bitcoin in the coming years. Mauricio Di Bartolomeo estimates that Bitcoin could reach $132,500, corresponding to the price of gold, while Robert Kiyosaki predicts it will surge to $350,000 by 2025. Other forecasts vary widely, with some, including Perianne Boring and PlanB, predicting prices as high as $800,000 to $1 million. Comments emphasize that these scenarios carry potential risks and that investors need to conduct thorough research before making decisions.
