Bitcoin, Ethereum, XRP, Dogecoin Whipsaw, But These 4 Key Factors Make It A ‘Hiccup,’ Not A Downturn
Bitcoin’s (CRYPTO: BTC) sell-off on Friday saw prices dip below $93,000, but Bitwise CIO Matt Hougan argues that the current pullback is a “hiccup” rather than a trend reversal.
Hougan sees strong underlying factors including regulatory tailwinds, institutional adoption and Bitcoin purchases by governments as structurally bullish factors for Bitcoin.
Crypto’s Turbulent Friday Trading Session
The cryptocurrency market experienced a volatile session Friday, triggered by the Federal Reserve’s decision to lower its anticipated rate cuts for the coming year.
Bitcoin plummeted from a high of $108,135 to below $92,805, before rebounding slightly, currently trading around $96,950, down 1.2% on the day.
Ethereum (CRYPTO: ETH) also traded down by 1% to $3,430.
This sharp decline mirrored a broader pullback in risk assets, with the S&P 500 dropping 3% and the Russell 2000 Small Cap Index falling 4.4% following the Fed announcement.
The Fed’s move, while expected in terms of a 25 basis point rate cut, surprised markets with its reduced forecast for future cuts. It is now projecting only two in 2025, down from four.
The Fed Matters For …
About The Author
