Home Sudden Bitcoin price fall sparks fears of further plunge

Sudden Bitcoin price fall sparks fears of further plunge

Bitcoin’s (BTC) price suddenly fell under $90,000 amid fears that the Federal Reserve may not cut interest as anticipated.

Bitcoin’s price fell from its mid-December high of about $108,250 to a lot of about $89,950 earlier today. This follows recent fears that the United States Federal Reserve may trigger a cryptocurrency crash with its approach to managing inflation.

The details

recent Forbes analysis warns that the cryptocurrency market cap was dangerously close to losing its key $3.2 trillion level. At the time of writing, CoinMarketCap’s market overview charts show that this level has already been lost, and the total market cap stands at $3.16 trillion—over 5.1% lower than the 24-hour peak of $3.33 trillion.

Alex Kuptsikevich, the FxPro chief market analyst, said in a recent note shared with Forbes that “the start of the new year has not been easy for the crypto market.” He added:

“The next target for the bears looks to be the $88,000 area. And in a negative scenario, bitcoin will face a quick pullback to $74,000. […]

Losing over 2% in 24 hours to $3.22 trillion, the market was back at the bottom of the consolidation range since the end of November.  […] It is with some trepidation that we now watch the eighth or so attempt to break below $3.20 trillion. Adding to the unease is the fact that last week’s upside momentum failed to develop, only attracting sellers.”

At the time of writing Bitcoin partially recovered, trading just under $91,850 — a price 3.06% lower than what it was 24 hours ago, and 8.66% lower than what it was 7 days ago. Kuptsikevich added:

“The next target for the bears looks to be the $88,000 area. And in a negative scenario, bitcoin will face a quick pullback to $74,000.”

The Crypto Fear & Greed Index stands at 61, indicating that the crypto market is now still ruled by greed. In such cases, the instrument is being interpreted as a warning of a possible imminent correction — but no instrument can guarantee any kind of market performance. The website reads:

“When Investors are getting too greedy, that means the market is due for a correction.”

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech, gambling and blockchain industries for major developments, new product and brand launches, AI breakthroughs, game releases and other newsworthy events. Editors assign relevant stories to in-house staff writers with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Adrian Zmudzinski is a cryptocurrency journalist with over 4,000 articles under his belt. His bylines include Cointelegraph, Benzinga, Crypto.News, and BeInCrypto.

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