Bitcoin’s euphoria at $108,000 was short-lived. Since this All Time High in November 2024, BTC has struggled to stay above $100,000, leaving traders and analysts perplexed. The last few weeks have seen the crypto market falter, notably due to speculation surrounding the decisions of the US Federal Reserve. As the Fear & Greed index marks a historic fall, let's dive behind the scenes of this turnaround.
The fall of bitcoin: a domino of events
Bitcoin news: the Fear & Greed index, which measures the mood of the crypto market, experienced a spectacular plunge on January 9, going from 69 to 50 in a single day. This descent into hell reflects a sudden shift from euphoria to a neutral feeling.
For the record, the last score this low was on October 14, 2024, when Bitcoin was trading at $63,000.
Several factors are responsible for this fall:
- BTC price below $92,000influenced by rumors of the sale of the 198,000 BTC seized on Silk Road;
- US bond yields rising and a dollar which is asserting itself, creating an unfavorable environment for risky assets;
- Mass Bitcoin ETF Withdrawals : $570 million in outstandings evaporated on January 8.
Influential analyst Michael Pizzino noted on Twitter:
“ The last time the index was at 50, BTC jumped $49,000 in two months. This could mean BTC at $140,000 in March! »
If history does not always repeat itself, it often rhymes… and this prediction is not lacking in spice.
Crypto market: time for adjustments
The crypto market, long boosted by optimistic forecasts, is undergoing a painful adjustment. L'Fear & Greed clue compile several factors :
- Volatility (25%), rising sharply in recent days;
- Trading volumes (25%), which reflect panic movements;
- The dominance of Bitcoin (10%), still solid despite the storm.
These metrics show a market in search of benchmarks, especially with the American Federal Reserve on the verge of tightening monetary screws. The prospect ofa tightening in 2025 puts traders on edge, fearing new pressure on BTC.
At the same time, speculation about an American government strategy to store bitcoin add to the confusion. So, consolidation strategy or simple pause before new momentum? The market is holding its breath.
All the cards are on the table: if the FED plays its role as catalyst, Bitcoin could aim for a new ATH as early as March 2025. A month and a half to prepare is short, so get on with your action plans!
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
