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Bitcoin’s Wild Ride: From $108K to $92K (Market Update)
The past week has been nothing short of a rollercoaster ride for the cryptocurrency market, particularly Bitcoin. Over the weekend, BTC prices soared above $108,000, but that enthusiasm was short-lived as Jerome Powell’s hawkish comments sent the entire crypto market plummeting.
At its peak, Bitcoin had reached an astonishing $108,000, fueled by a mix of factors including Michael Saylor’s MicroStrategy announcing its largest-ever BTC purchase. However, the Fed’s decision to slow down rate cuts and potentially end them in 2025 led to a dramatic reversal.
As Powell spoke about potentially halting rate reductions, investors scrambled to exit their positions, leading to a sharp decline in Bitcoin prices. By the close of December 19th, BTC had tumbled all the way back down to $92,100.
This volatility is no surprise given the market’s notorious unpredictability. Yet, even the most seasoned investors may struggle to find logical explanations for such drastic shifts.
MicroStrategy’s massive purchase, worth a staggering $1.5 billion, stands out as one of this week’s most significant events. The company acquired 15,350 BTC at an average price of roughly $100,000, making it its largest-ever Bitcoin transaction.
Ripple made headlines by launching its own stablecoin called RLUSD, which promptly boosted XRP prices. Meanwhile, Ethereum whales have been accumulating an unprecedented amount of ETH, with over 57% of the entire supply held by large wallets.
BlackRock’s institutional investment trust has seen its assets under management (AUM) skyrocket in just over a year, outpacing the performance of its gold-based ETF counterpart.
Bitcoin’s recent price drop may be a sign that this bull market has finally come to an end. A few days ago, Bitcoin ETFs suffered their worst day since inception, with nearly $700 million being withdrawn from the funds.
This article is part of our weekly series, providing you with all the essential news and updates in the world of cryptocurrency.
Source: cryptopotato.com
