Bitcoin Price Drops To $100K: Will BTC Hit $108K Again?

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As a seasoned researcher with a decade-long career in the financial markets under my belt, I have seen countless market fluctuations and learned to navigate these tumultuous waters with a steady hand. Today’s crypto market volatility, with Bitcoin dipping below $100K, is no exception.

Today, the wider crypto market has seen volatile trading, with Bitcoin experiencing a significant drop. The leading cryptocurrency has dipped below the $100K mark due to intense selling pressure, not only in the digital assets sector but also across the broader financial market. Interestingly, this decline in Bitcoin’s price occurred shortly after the Fed made its rate cut decision and Federal Reserve Chair Jerome Powell delivered his speech.

Bitcoin Price Dips Below $100K Sparking Market Discussions

The price of Bitcoin has significantly increased since Donald Trump was elected U.S. President this year. This surge has sparked optimism about a favorable regulatory stance towards cryptocurrencies under the new administration. Additionally, institutional interest in Bitcoin has grown noticeably, as indicated by the substantial investment into the U.S. Spot Bitcoin Exchange-Traded Fund (ETF).

Nevertheless, even though it seems promising, cryptocurrencies have experienced a significant downturn this week. Bitcoin has dipped below the $100K threshold, signaling a wave of sellers among investors, who are reacting to economic concerns on a global scale that have caused turbulence in the larger financial sector.

Yesterday, as anticipated by the markets, the U.S. Federal Reserve decided to lower interest rates by a quarter of a percentage point. This move has boosted investor confidence for the near future.

Contrary to expectation, Jerome Powell’s recent remarks as Fed Chair have caused a shift in investor confidence. In his latest statement, Powell hinted at potential reduction in the Fed’s rate cuts before the new year, leading to debates among market participants.

In simpler terms, the U.S. Federal Reserve revised its predictions, suggesting that the central bank will lower interest rates by just twice in 2025, instead of the previously anticipated four times. This announcement led to a surge in selling activity in the market, affecting the value of Bitcoin.

Will BTC Witness Recovery Ahead?

Today, Bitcoin’s price dropped approximately 3% and was traded at around $101,738. Additionally, its trading volume increased by 22% to reach about $95 billion. This significant crypto experienced a low of $98,792 and a high of $105,302 over the past 24 hours, demonstrating the market’s highly volatile nature. Furthermore, it has also reached its all-time high (ATH) of $108,268 on December 17.

As a researcher immersed in the dynamic world of cryptocurrencies, I’ve noticed an optimistic outlook persisting among experts, even amidst this temporary dip in the crypto’s value. A wave of market analysts have expressed confidence that the crypto will rebound soon, attributing their optimism to the bullish market trends. It’s worth noting that recent reports suggest the US is contemplating a Bitcoin Strategic Reserve, which has significantly boosted investor confidence in the asset. Moreover, influential figures such as EU politicians are also considering similar moves, lending further credibility and momentum to this promising sector.

Regarding all these factors, the overall market feeling stayed positive. Notably, renowned analyst Ali Martinez forecasts that Bitcoin (BTC) might drop to around $99,000. However, he also pointed out that when BTC surpasses the $105,400 threshold, the negative trend is expected to weaken.

Furthermore, Peter Brandt expressed his belief that Bitcoin could potentially reach $125,000 in the near future, demonstrating his faith in the leading cryptocurrency. Meanwhile, the Chief Investment Officer (CIO) of Bitwise predicts that the price of Bitcoin will surge to $500,000 once a US Bitcoin Strategic Reserve is established.

Even though experts have frequently cautioned about temporary setbacks such as the one we’re experiencing now, they still anticipate a long-term growth trend for Bitcoin and cryptocurrencies. For instance, Arthur Hayes had previously stated that BTC would experience corrections, even predicting a possible crypto market crash around President Trump’s inauguration on January 20. Nevertheless, despite his bearish outlook, Hayes also suggested that the market would resume its upward trajectory after this period.

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2024-12-19 12:00