The post ‘Normal’ Correction or Bull Market End for Bitcoin and Crypto? appeared on BitcoinEthereumNews.com.

The landscape in the cryptocurrency space can change drastically in days. Recall that bitcoin tapped a new all-time high of over $108,000 on Tuesday, but its price has slumped to $94,500 since then. This came after a few remarks by Federal Reserve Chair Jerome Powell, who warned that the central bank could not purchase BTC despite Trump’s promises and that there might not be any more key interest rate reductions in 2025. With bitcoin reacting the way it did to those comments, this has led to speculations among the crypto community about whether this is just another ‘normal’ correction during a bull market cycle or whether the asset’s post-Trump-victory honeymoon is over. Bull Market’s End Side Even before Donald Trump’s decisive victory, BTC’s price had already started to appreciate after the US Federal Reserve pivoted from its previous monetary strategy and started lowering the interest rates. In fact, the first cut was the deepest, as they say, when the central bank reduced the rates by 50 basis points. Riskier assets such as bitcoin reacted with immediate price increases. However, the Fed’s policy seems to have a bigger impact on the asset’s price movements than many anticipated. After all, the expected 25 basis point reduction from Wednesday didn’t lead to another price increase. Just the opposite, the central bank’s warning about another potential reversal in its strategy resulted in a bloodbath for BTC and the entire crypto market. Consequently, those who argue that the bull market might have ended received some validation. In case the Fed indeed stops cutting the rates, BTC’s bull market might come to a screeching halt. Powell’s actions have already changed US investors’ behavior toward the cryptocurrency, as the spot Bitcoin ETFs recorded their worst day in terms of net outflows since their inception nearly a year…

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Filed under: News - @ December 20, 2024 10:27 am