BTC is down 2% on a daily scale, with one element signaling that the pullback might intensify in the following days.
TL;DR
Bitcoin (BTC) became the talk of the town in mid-December, reaching a new all-time price of over $108,000. However, the Federal Reserve’s latest FOMC meeting and, more specifically, Jerome Powell’s comments changed the scene in the crypto market.
While the Chairman of America’s central bank announced another rate cut of 0.25%, he hinted that concerns of rising inflation mean that they might not cut rates going forward in 2025. Powell added that the Fed is not allowed to hold BTC, casting doubt on Trump’s proposed plan to establish a strategic BTC reserve.
The disclosure occurred on December 18, with the primary cryptocurrency experiencing enhanced volatility in the following week. The price hovered between $92,600 to almost $100,000. In the past several hours, BTC fell by 2% to its current $95,600 (per CoinGecko’s data), and one important factor indicates that the plunge could intensify in the near future.
The popular X user Ali Martinez revealed that over 33,000 BTC (valued at approximately $3.2 billion) have been sent to exchanges in the last seven days. This move suggests that investors may be preparing to offload their holdings. Large sell-offs would result in increased circulating supply, which, combined with non-rising demand, could negatively impact the BTC price.
Martinez previously outlined $97,300 as a critical support zone for the asset due to the numerous investors who had bought roughly 1.5 million BTC there. As mentioned earlier, though, the price plunged below that level.
Contrary to the aforementioned assumption, many analysts remain optimistic that the asset’s valuation could soon rally beyond $100,000 again. X user Captain Faibik envisioned a rise to around $110K by the end of the year, while Crypto Rover believes BTC “is about to go parabolic” next year.
Jelle and Mags are also among the bulls. The former predicted a new ATH once BTC reclaims $102,000, while the latter thinks the bull cycle is still far from reaching its peak. Mags forecasted a jump to over $320K sometime in 2025, after which bears might take control.
For more insights into price predictions and to check whether now is the ideal time to invest in BTC, watch our dedicated video below:
Dimitar got interested in cryptocurrencies back in 2018 amid the prolonged bear market. His biggest passion in the field is Bitcoin and he was fascinated with its journey. With a flair for producing high-quality content, he started covering the cryptocurrency space in late 2018. His hobby is football.
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