Highlights
Bitcoin's price today has fallen below the $100,000 mark, sparking market discussions.
The dollar index fell after Powell hinted at taking a tough stance.
Despite recent declines, market experts remain optimistic about the future of BTC.
Today, the broader cryptocurrency market continues to fluctuate, with Bitcoin's price facing significant setbacks. Due to massive selling pressure in the broader financial markets (not to mention the digital asset space), the flagship cryptocurrency recently fell below the $100,000 level, notably occurring 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 soared, fueling market sentiment for a favorable regulatory environment for cryptocurrencies under the new president's leadership. In addition, institutional interest in BTC has also surged, evidenced by strong inflows into U.S. spot Bitcoin ETFs.
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 selling off in a frenzy amid macroeconomic concerns that have triggered overall volatility in the financial markets.
The Federal Reserve announced a 25 basis point rate cut at its latest meeting yesterday, which met market expectations and boosted investor optimism in the short term.
Nevertheless, Powell's latest remarks still dampened investor sentiment, as he hinted that the Fed might slow down rate cuts before next year, sparking market discussions.
Meanwhile, the Federal Reserve stated that the central bank has halved its previously expected number of rate cuts. Specifically, the central bank may only cut the policy rate twice in 2025, down from the previously expected four cuts for the entire year. This triggered selling pressure in the market, affecting Bitcoin's price.
Will BTC see 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 high volatility in market trading. Additionally, it reached an all-time high of $108,268 on December 17.
However, despite the short-term correction in cryptocurrency prices, experts remain bullish. Many market analysts suggest 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 has boosted market confidence in the asset. Additionally, 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 would drop to $99,000. However, he also noted that once BTC rises above $105,400, the bearish momentum will begin to fade.
Additionally, Peter Brandt recently stated that BTC is expected to reach $125,000 in the future, reflecting his confidence in this flagship cryptocurrency. Meanwhile, Bitwise's CIO indicated that once the U.S. Bitcoin strategic reserve is in place, the Bitcoin price will reach $500,000.
Nevertheless, experts repeatedly warn of short-term corrections, just like the current situation. As a backdrop, Arthur Hayes stated that Bitcoin will continue to face corrections while predicting that the cryptocurrency market may crash during Trump's inauguration on January 20. However, despite the bearish prediction, Hayes pointed out that the market will continue to rise.
