The world’s
leading cryptocurrency, Bitcoin (BTC), experienced significant volatility
following the Federal Reserve’s (Fed’s) latest monetary policy announcement,
briefly dipping below the psychological $100,000 mark before staging a
recovery.
The price
action reflects broader market uncertainty as investors digest the Fed’s more
conservative approach to rate cuts in 2025.
Bitcoin
touched $98,760 in a sharp downturn that erased nearly $10,000 from its recent
all-time high (ATH). The movement coincided with a broader sell-off in risk
assets, as market participants adjusted their positions following
the Fed’s hawkish guidance.
The
cryptocurrency market’s reaction mirrors the complex interplay between monetary
policy and digital asset valuations. While
the Fed delivered its third consecutive rate cut, the central bank’s
cautious stance on future reductions triggered a reassessment of risk positions
across multiple asset classes.
“In support
of its goals, the Committee decided to lower the target range for the federal
funds rate by 1/4 percentage point to 4-1/4 to 4-1/2 percent,” Fed commented in
the official statement.
As a
result, Bitcoin fell by 5.6% during Wednesday’s session, testing
levels below the $100,000 mark. This marked the largest single-day drop
since August 5, when the price declined by 7%, hitting a low of $49,000. Today
(Thursday, December 19, 2024), Bitcoin also tested levels below the
psychological support of $100,000. However, at the time of writing, it has
modestly rebounded and is trading at $101,600 on Binance.
Bitcoin price defends the $100K mark. Source: TradingView
The
cryptocurrency’s trajectory has been significantly influenced by political
developments, with a 50% surge following the November presidential election.
The president-elect’s pro-crypto stance and proposals for a national Bitcoin
reserve have fundamentally altered market sentiment, though regulatory
uncertainties persist.
Federal Reserve Chair Jerome Powell says the Fed is “not allowed to own Bitcoin”
They weren’t allowed to own Corporate Bonds before Covid either.
Rules change… 😉 pic.twitter.com/3UBBUuKtdF
— Bitcoin Archive (@BTC_Archive) December 18, 2024
$661 Million in Longs
Vanished
Over the
past 24 hours, more than $661 million in leveraged long positions have been
liquidated in the cryptocurrency market, according to Coinglass data. The
majority of these liquidations were tied to Bitcoin ($110 million) and Ethereum
($109 million).
Bitcoin’s
decline fueled a broader depreciation across the altcoin market. Alongside the
oldest cryptocurrency, Ethereum also saw significant losses, dropping 4.4%,
along with XRP (5.4%), Solana (2.5%), and Dogecoin (5.6%).
The total
market capitalization shrank to $3.7 trillion, with Bitcoin accounting for over
$2 trillion of that value.
The total market capitalization of the most popular cryptocurrencies. Source: CoinMarketCap
Options
market activity has shown increased interest in downside protection, with
traders seeking hedging strategies amid heightened volatility. Market
specialists suggest the possibility of short-term price movements toward the
low $90,000 range, though such dips are expected to be temporary.
BTC Technical Analysis:
Will Bitcoin Keep Going Down?
In my view,
the $100,000 level will serve as a key support floor, one that bears will find
challenging to break. Additionally, Bitcoin benefits from short-term support
provided by the 20-day exponential moving average (20 EMA).
The
post-Fed decision movement was significant, and without the substantial
accumulation of buy orders near $100K, we would likely be seeing even lower BTC
prices. I believe this six-figure value provides Bitcoin with room for a
rebound.
Bitcoin price chart technical analysis. Source: TradingView
At this
moment, the critical resistance level is the previous all-time high (ATH) of
nearly $108,000, tested on December 15. My outlook will shift if Bitcoin drops
below the current support, though this is still no reason to panic. BTC has a
dense network of support levels ahead, but three key levels stand out.
Bitcoin Price Support
Levels
- $94,400–$94,300 – 23.6% Fibonacci retracement, reinforced by local lows.
- $90,000 –
Another psychological level and the low from December 5. - $72,328 –
61.8% Fibonacci retracement, aligning with the May-June highs.
Only if
Bitcoin falls below $72,000 will I change my stance to bearish. Until then,
I’ll view all downward corrections as opportunities to buy Bitcoin at more
attractive prices.
Bitcoin Long Term Price
Prediction
VanEck’s head of digital assets research, Matthew Sigel
Investment
management firm VanEck
has unveiled its bold forecasts for the cryptocurrency market in 2025,
predicting significant price peaks followed by a period of market
consolidation.
“Following
this first peak, we anticipate a 30% retracement in BTC, with altcoins facing
sharper declines of up to 60% as the market consolidates during the summer,”
VanEck’s Matthew Sigel forecasted. “However, a recovery is likely in the fall,
with major tokens regaining momentum and reclaiming previous all-time highs by
the end of the year.”
VanEck
expects the ongoing crypto bull market to culminate in its first major peak
during Q1 2025. The firm anticipates Bitcoin reaching $180,000, with Ethereum
exceeding $6,000. Other notable cryptocurrencies like Solana and Sui are
projected to hit $500 and $10, respectively.
Broader Bitcoin Price
Predictions for 2025
VanEck’s forecast is one
of several ambitious projections for Bitcoin in 2025. Other
prominent predictions include:
|
Source |
Prediction (BTC Price) |
Key Drivers |
|
Tim Draper |
$250,000 |
Increased merchant adoption and Bitcoin |
|
Standard |
$200,000 |
Institutional inflows, regulatory clarity, and |
|
Tom Lee |
$250,000 |
A growing shortage of Bitcoin supply, making |
|
Arthur Hayes |
$175,000 |
A surge in capital from traditional financial |
These
forecasts underline the diverse perspectives within the cryptocurrency
industry, highlighting a mix of macroeconomic factors and market dynamics
driving optimism for Bitcoin and the broader crypto ecosystem in 2025.
For those
interested in staying updated on the latest cryptocurrency trends, you can
explore my other analyses. Last week, I examined whether
Dogecoin has the potential to reach $10 and reviewed the latest
developments surrounding Ripple and the
XRP token’s price movements.
FAQ, Bitcoin Price
Why is Bitcoin dropping
today?
Bitcoin’s
decline is primarily due to the Federal Reserve’s hawkish stance on future
interest rate cuts. While the Fed delivered its third consecutive rate cut,
they signaled fewer rate reductions for 2025 than previously expected, causing
investors to reassess their positions in speculative assets.
Is Bitcoin having issues?
No, Bitcoin
isn’t experiencing technical issues. The current price movement is a market
reaction to broader macroeconomic factors. The cryptocurrency dropped to
$98,760 before stabilizing above $100,000, reflecting normal market dynamics in
response to monetary policy changes.
Is Bitcoin predicted to go
up?
Multiple
analysts maintain bullish long-term predictions for Bitcoin: VanEck forecasts
$180,000 by Q1 2025, Standard Chartered maintains a $200,000 target for 2025, Tim
Draper projects $250,000 by the end of 2025. The average predicted trading
price for December 2024 is around $111,724. These predictions are based on
factors such as institutional adoption and the regulatory clarity.
The world’s
leading cryptocurrency, Bitcoin (BTC), experienced significant volatility
following the Federal Reserve’s (Fed’s) latest monetary policy announcement,
briefly dipping below the psychological $100,000 mark before staging a
recovery.
The price
action reflects broader market uncertainty as investors digest the Fed’s more
conservative approach to rate cuts in 2025.
Bitcoin
touched $98,760 in a sharp downturn that erased nearly $10,000 from its recent
all-time high (ATH). The movement coincided with a broader sell-off in risk
assets, as market participants adjusted their positions following
the Fed’s hawkish guidance.
The
cryptocurrency market’s reaction mirrors the complex interplay between monetary
policy and digital asset valuations. While
the Fed delivered its third consecutive rate cut, the central bank’s
cautious stance on future reductions triggered a reassessment of risk positions
across multiple asset classes.
“In support
of its goals, the Committee decided to lower the target range for the federal
funds rate by 1/4 percentage point to 4-1/4 to 4-1/2 percent,” Fed commented in
the official statement.
As a
result, Bitcoin fell by 5.6% during Wednesday’s session, testing
levels below the $100,000 mark. This marked the largest single-day drop
since August 5, when the price declined by 7%, hitting a low of $49,000. Today
(Thursday, December 19, 2024), Bitcoin also tested levels below the
psychological support of $100,000. However, at the time of writing, it has
modestly rebounded and is trading at $101,600 on Binance.
Bitcoin price defends the $100K mark. Source: TradingView
The
cryptocurrency’s trajectory has been significantly influenced by political
developments, with a 50% surge following the November presidential election.
The president-elect’s pro-crypto stance and proposals for a national Bitcoin
reserve have fundamentally altered market sentiment, though regulatory
uncertainties persist.
Federal Reserve Chair Jerome Powell says the Fed is “not allowed to own Bitcoin”
They weren’t allowed to own Corporate Bonds before Covid either.
Rules change… 😉 pic.twitter.com/3UBBUuKtdF
— Bitcoin Archive (@BTC_Archive) December 18, 2024
$661 Million in Longs
Vanished
Over the
past 24 hours, more than $661 million in leveraged long positions have been
liquidated in the cryptocurrency market, according to Coinglass data. The
majority of these liquidations were tied to Bitcoin ($110 million) and Ethereum
($109 million).
Bitcoin’s
decline fueled a broader depreciation across the altcoin market. Alongside the
oldest cryptocurrency, Ethereum also saw significant losses, dropping 4.4%,
along with XRP (5.4%), Solana (2.5%), and Dogecoin (5.6%).
The total
market capitalization shrank to $3.7 trillion, with Bitcoin accounting for over
$2 trillion of that value.
The total market capitalization of the most popular cryptocurrencies. Source: CoinMarketCap
Options
market activity has shown increased interest in downside protection, with
traders seeking hedging strategies amid heightened volatility. Market
specialists suggest the possibility of short-term price movements toward the
low $90,000 range, though such dips are expected to be temporary.
BTC Technical Analysis:
Will Bitcoin Keep Going Down?
In my view,
the $100,000 level will serve as a key support floor, one that bears will find
challenging to break. Additionally, Bitcoin benefits from short-term support
provided by the 20-day exponential moving average (20 EMA).
The
post-Fed decision movement was significant, and without the substantial
accumulation of buy orders near $100K, we would likely be seeing even lower BTC
prices. I believe this six-figure value provides Bitcoin with room for a
rebound.
Bitcoin price chart technical analysis. Source: TradingView
At this
moment, the critical resistance level is the previous all-time high (ATH) of
nearly $108,000, tested on December 15. My outlook will shift if Bitcoin drops
below the current support, though this is still no reason to panic. BTC has a
dense network of support levels ahead, but three key levels stand out.
Bitcoin Price Support
Levels
- $94,400–$94,300 – 23.6% Fibonacci retracement, reinforced by local lows.
- $90,000 –
Another psychological level and the low from December 5. - $72,328 –
61.8% Fibonacci retracement, aligning with the May-June highs.
Only if
Bitcoin falls below $72,000 will I change my stance to bearish. Until then,
I’ll view all downward corrections as opportunities to buy Bitcoin at more
attractive prices.
Bitcoin Long Term Price
Prediction
VanEck’s head of digital assets research, Matthew Sigel
Investment
management firm VanEck
has unveiled its bold forecasts for the cryptocurrency market in 2025,
predicting significant price peaks followed by a period of market
consolidation.
“Following
this first peak, we anticipate a 30% retracement in BTC, with altcoins facing
sharper declines of up to 60% as the market consolidates during the summer,”
VanEck’s Matthew Sigel forecasted. “However, a recovery is likely in the fall,
with major tokens regaining momentum and reclaiming previous all-time highs by
the end of the year.”
VanEck
expects the ongoing crypto bull market to culminate in its first major peak
during Q1 2025. The firm anticipates Bitcoin reaching $180,000, with Ethereum
exceeding $6,000. Other notable cryptocurrencies like Solana and Sui are
projected to hit $500 and $10, respectively.
Broader Bitcoin Price
Predictions for 2025
VanEck’s forecast is one
of several ambitious projections for Bitcoin in 2025. Other
prominent predictions include:
|
Source |
Prediction (BTC Price) |
Key Drivers |
|
Tim Draper |
$250,000 |
Increased merchant adoption and Bitcoin |
|
Standard |
$200,000 |
Institutional inflows, regulatory clarity, and |
|
Tom Lee |
$250,000 |
A growing shortage of Bitcoin supply, making |
|
Arthur Hayes |
$175,000 |
A surge in capital from traditional financial |
These
forecasts underline the diverse perspectives within the cryptocurrency
industry, highlighting a mix of macroeconomic factors and market dynamics
driving optimism for Bitcoin and the broader crypto ecosystem in 2025.
For those
interested in staying updated on the latest cryptocurrency trends, you can
explore my other analyses. Last week, I examined whether
Dogecoin has the potential to reach $10 and reviewed the latest
developments surrounding Ripple and the
XRP token’s price movements.
FAQ, Bitcoin Price
Why is Bitcoin dropping
today?
Bitcoin’s
decline is primarily due to the Federal Reserve’s hawkish stance on future
interest rate cuts. While the Fed delivered its third consecutive rate cut,
they signaled fewer rate reductions for 2025 than previously expected, causing
investors to reassess their positions in speculative assets.
Is Bitcoin having issues?
No, Bitcoin
isn’t experiencing technical issues. The current price movement is a market
reaction to broader macroeconomic factors. The cryptocurrency dropped to
$98,760 before stabilizing above $100,000, reflecting normal market dynamics in
response to monetary policy changes.
Is Bitcoin predicted to go
up?
Multiple
analysts maintain bullish long-term predictions for Bitcoin: VanEck forecasts
$180,000 by Q1 2025, Standard Chartered maintains a $200,000 target for 2025, Tim
Draper projects $250,000 by the end of 2025. The average predicted trading
price for December 2024 is around $111,724. These predictions are based on
factors such as institutional adoption and the regulatory clarity.
