Bitcoin briefly traded below the $100,000 mark yesterday, reaching its lowest level since June, as the broader crypto market reacted to the outcome of the recent U.S. Federal Reserve meeting. The move followed comments by Fed Chairman Jerome Powell, who signalled that a December interest rate cut is “not a foregone conclusion”, tempering investor optimism for looser monetary policy in the near term.
Simon Peters, Crypto Market Analyst and UK Account Management Team Leader at eToro, commented: “Ahead of the meeting, the market’s probability of a rate cut stood as high as 96%. After the press conference, this dropped drastically to less than 70%, highlighting a clear shift toward risk-off sentiment. The Crypto Fear and Greed Index has since fallen into ‘Extreme Fear’ territory.”
According to market data, liquidations totalling approximately $915 million since the start of November have further amplified selling pressure across crypto assets. Peters added that while the correction may unsettle some investors, volatility of this scale is not unusual for Bitcoin.
“Bitcoin has seen several 30%+ drawdowns in recent years – the last between January and April, when it dropped from $109,000 to $74,500, before rallying 70% to its current all-time high of $126,300,” he said.
Despite the recent decline, Peters noted that Bitcoin remains in a long-term uptrend, forming higher highs and higher lows.
“Short-term catalysts such as renewed expectations for rate cuts or continued inflows into spot Bitcoin ETFs could see prices rebound just as quickly,” he concluded.
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