Bitcoin has dropped sharply from its post-Trump election victory peak of almost $110,000 per bitcoin to under $91,000, sparking concerns that a potential price crash is imminent. The combined crypto market has struggled to hold onto gains, with momentum sapped by positive economic updates that suggest the Federal Reserve may not cut interest rates this year.
Analysts warn that the next target for bears could be the $88,000 area, and in a negative scenario, bitcoin could face a quick pullback to $74,000. The market has been on shaky ground since the end of November, with a 2% drop over the past 24 hours taking it back to the bottom of the consolidation range.
The failure of recent upside momentum, coupled with last week’s failed attempt to break above $3.20 trillion, has added to investor unease. The combined crypto market is currently trading below this level, and some experts believe it may drop further.
The Fed’s warning of a looming crisis has sent shockwaves through the market, with traders nervously watching for any signs of a potential price crash. As one analyst noted, “The start of the new year has not been easy for the crypto market.”
Source: https://www.forbes.com/sites/digital-assets/2025/01/13/sudden-bitcoin-price-plunge-sparks-32-trillion-crypto-crash-fear