Highlights
Bitcoin's price has fallen below the $100,000 mark today, sparking market discussions.
The dollar index fell after Powell hinted at taking a tough stance.
Despite the recent decline, market experts remain optimistic about the future trend of BTC.
Today, the broader cryptocurrency market continues to fluctuate, with Bitcoin's price facing significant setbacks. Due to immense selling pressure in the broader financial markets (not to mention the digital asset sector), the flagship cryptocurrency recently fell below the $100,000 level. Notably, this decline in BTC came after the Federal Reserve's decision to cut rates and Powell's remarks.
The drop in Bitcoin's price below $100,000 has sparked market discussions.
Since Trump won the U.S. election this year, Bitcoin's price has been rising, fueling market sentiment for a regulatory environment favorable to cryptocurrencies under the new president's leadership. Additionally, institutional interest in BTC has surged, evidenced by strong inflows into the U.S. spot Bitcoin ETF.
However, despite this, cryptocurrencies faced significant setbacks this week. BTC recently fell below the $100,000 mark, indicating that a large number of investors are frantically selling amid macroeconomic concerns that have triggered overall volatility in financial markets.
The Federal Reserve announced a 25 basis point rate cut at its latest meeting yesterday, which met market expectations and briefly boosted investor optimism.
Nevertheless, Powell's latest comments still dampened investor sentiment, as he hinted that the Federal Reserve may slow down rate cuts before next year, sparking market discussions.
Meanwhile, the Federal Reserve stated that the central bank has halved its previous expectations for rate cuts. Specifically, the central bank may only lower policy rates twice in 2025, down from the previously expected four rate cuts for the year. This triggered selling pressure in the market, impacting Bitcoin's price.
Will BTC witness a recovery in the future?
Bitcoin's price fell nearly 3% today, trading at $101,738, with trading volume rising 22% to $95 billion. In the past 24 hours, this flagship cryptocurrency hit a low of $98,792 and a high of $105,302, reflecting highly volatile market trading conditions. Additionally, it reached an all-time high of $108,268 on December 17.
However, despite the short-term pullback in cryptocurrency prices, experts remain bullish. Many market analysts state that given the bullish market trend, cryptocurrencies are expected to recover in the future. Reports indicate that the U.S. is considering establishing a Bitcoin strategic reserve, which boosts market confidence in the asset. Moreover, other global leaders, including EU politicians, are also targeting similar initiatives.
Considering all these aspects, market sentiment remains strong. Meanwhile, in a recent analysis, top market expert Ali Martinez predicted that BTC will drop to $99,000. However, he also noted that once BTC surges above $105,400, the bearish momentum will begin to dissipate.
Additionally, Peter Brandt recently stated that BTC is expected to reach $125,000 in the future, reflecting his confidence in this flagship cryptocurrency. At the same time, Bitwise's CIO mentioned that once the U.S. Bitcoin strategic reserve is established, Bitcoin's price could reach $500,000.
Nevertheless, experts repeatedly warn of short-term pullbacks, like the current situation. As a backdrop, Arthur Hayes stated that Bitcoin will continue to face pullbacks while predicting that the cryptocurrency market may crash during Trump's inauguration on January 20. However, despite the bearish predictions, Hayes pointed out that the market will continue to rise.
