📉 Bitcoin Price Plummets Below $96,000 Amid Profit-Taking and Economic Uncertainty
➡️ On December 22, 2024, bitcoin's price fell below the $96,000 threshold, reaching a low of $95,135 per unit. This decline follows a recent surge where bitcoin surpassed the $100,000 mark earlier this month.
💰 Analysts attribute these price fluctuations to investors cashing in on profits from bitcoin's rapid ascent, coupled with ongoing global economic uncertainty. Market sentiment has also been influenced by President-elect Donald Trump’s pro-crypto stance, which includes proposals for a national bitcoin reserve and appointing crypto-friendly leaders to regulatory positions.
🟥 The drop coincided with a statement from Federal Reserve Chair Jerome Powell, who announced a slowdown in rate cuts for 2025 and reiterated that the U.S. central bank cannot hold bitcoin as a reserve asset. Following his remarks, bitcoin has decreased by over 11% from its peak of $108,364 on December 17.
🔮 Despite the current downturn, experts remain optimistic about bitcoin's future. Some predictions indicate it could rise to $150,000 or more by 2025, driven by increasing institutional interest and favorable regulatory policies under the Trump administration. However, Sunday’s price drop resulted in $258.26 million in liquidations across derivatives markets, including $30.12 million from bitcoin long positions.
⚠️ Caution persists among investors and traders due to the cryptocurrency market's notorious volatility. While some view this downturn as a healthy correction within a broader upward trend, others see it as a reason to proceed with caution. As always, time will reveal the future trajectory of bitcoin.
