Bitcoin plunged along with the stock market after the US Federal Reserve warned that inflation remained high and BlackRock surprised the market.
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The price of Bitcoin plummeted towards $90,000 per Bitcoin, sending the entire crypto market into decline and erasing about $500 billion worth of value from the $3.2 trillion crypto market.
Bitcoin, which has fallen about 10% in the past 24 hours, dwarfed Ethereum, which has fallen between 15% and 25%, and smaller top 10 cryptocurrencies, including Solana and Dogecoin.
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Forbes BlackRock Quietly Admits to Catastrophic Bitcoin Price Bomb By Billy Bambrough
US Federal Reserve Chairman Jerome Powell has warned that inflation will remain a problem next year,… [+] Decline in Bitcoin price and virtual currency market.
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This week, Federal Reserve Chairman Jerome Powell warned that interest rates will not fall as quickly as the Fed previously thought, reducing the number of rate cuts planned by 2025 from four to two. Traders were disappointed when they warned that they would be cut back.
“The comments from the Fed were a wake-up call,” Danny Hewson, head of financial analysis at AJ Bell, said in an emailed comment.
“Inflation is proving to be stagnant, and tax cuts and tariffs could provide some reflationary material.” Risk appetite is subdued. Trump 2.0 is a known unknown and no one wants to be overexposed if the climate turns out to be severe. ”
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Forbes Fed's 'biggest nightmare' suddenly becomes reality as Bitcoin price soars By Billy Bambrough
Bitcoin prices have crashed after a huge rise this year, and Bitcoin prices… [+] It has fallen towards $90,000, pushing down the rest of the cryptocurrency market.
forbes digital assets
Meanwhile, Bitcoin price and cryptocurrency market watchers are warning of more volatility ahead.
Nick Foster, founder of decentralized finance (DeFi) protocol Derive, said: “We will see an increase in volatility levels for Ethereum and Bitcoin towards early 2025, especially around the December 27, 2025 expiry settlement. “This is expected,” he said in an emailed comment. However, he added that he expects Bitcoin prices and the broader crypto market to recover through 2025.
“We are seeing a trend among funds and high net worth individuals moving towards longer expiration options, such as those set from September onwards, to reflect the positive outlook for 2025. This is clear from the significant outperformance,” posted Derive.xyz, suggesting strong market optimism. ”
