The cryptocurrency market is facing a significant pullback, with Bitcoin approaching the critical support of $94,000. The global cryptocurrency market cap has plummeted to $3.2 trillion, marking a drop of nearly 10% in just one day.
This sharp decline comes shortly after Bitcoin hit an all-time high above $108,000 last Tuesday. However, its value has since fallen back to the $94,000 mark. This decline follows statements from Federal Reserve Chairman Jerome Powell. In his recent comments, Powell clarified that the central bank has no intention of acquiring BTC, contradicting speculation fueled by previous promises from former President Donald Trump, and also hinted at the possibility of no further interest rate cuts until 2025.
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The market’s response to Powell’s stance has sparked intense speculation in the cryptocurrency community, raising questions about whether the current correction is just a part of market cycles or whether it represents the end of the bullish phase experienced after Trump’s election.
Even before Trump’s election, BTC’s price was already on the rise, influenced by the Federal Reserve’s change in monetary policy, which had begun to reduce interest rates. The first cut, of 50 basis points, quickly boosted the prices of more volatile assets, such as bitcoin. However, the expectation of an additional 25 basis point cut last Wednesday did not translate into additional gains. Instead, the prospect of a reversal in monetary policy precipitated a sharp drop in prices, severely affecting BTC and the cryptocurrency market as a whole.
Analysts point out that the support zone at $94,000 is vital for Bitcoin’s immediate future. If this barrier is broken, the asset’s price could fall to $90,000, with the potential to reach as low as $80,000.
Cryptocurrency Market Declines by 10%: Bitcoin May Reach $90,000