Bitcoin prices have plummeted toward $90,000 per bitcoin in recent days, wiping out over $500 billion from the crypto market’s value. However, the price has since rebounded to within touching distance of $100,000 per bitcoin after revised inflation data showed a smaller-than-expected rise.
Federal Reserve chair Jerome Powell’s warning that interest rates won’t be lowered as quickly as previously thought reduced traders’ expectations. However, economists polled by Reuters had estimated a 2.5% rise in November inflation, which was lower than the actual 2.4% rise.
Major cryptocurrencies such as Ethereum, XRP, and Dogecoin also rebounded after crashing lower due to market concerns over interest rate cuts next year. Cathie Wood, founder of Ark Investment Management, has predicted that bitcoin’s price will surpass $1 million by 2030, giving it a potential market capitalization of around $20 trillion.
Crypto market watchers expect the price to remain volatile in the coming weeks and months, with some predicting further swings due to the upcoming US presidential inauguration. “Bitcoin exhibits typically mixed behavior over Christmas and New Year,” said James Toledano, chief operating officer at Unity Wallet.
Source: https://www.forbes.com/sites/digital-assets/2024/12/21/stark-fed-wake-up-call-triggers-500-billion-bitcoin-and-crypto-price-rout