Bitcoin’s back to doing what it does best — chaos.
The world’s biggest cryptocurrency sunk to below $93K, or nearly 15%, in the 48 hours after the Federal Reserve signaled fewer rate cuts next year, sending a shiver through the markets.
It also followed Donald Trump torpedoing a bipartisan government funding deal, fueling fears that the US government is heading for a shutdown within days. A perfect storm.
Bitcoin was not the only casualty. Ether, the second biggest crypto, too was already sliding (by more than 17%) even before the uncertainty surfaced.
Other altcoins like XRP, BNB and Solana have also been in free fall. Elon Musk’s fav, Dogecoin, is also down 20%.
Read more: Crypto’s cruelest con: Lagos bust unmasks pig butchering’s global scale
The question
The fall has — predictably — sparked fresh buzz around Bitcoin: to buy or not to buy?
“With Bitcoin falling … today, the ratio of crypto discussions that are about buying crypto’s dip has reached its highest level in over 8 months,” says crypto market intelligence platform Santiment.
Well, some “knowns and unknowns” are already cashing in on the crash — including the president-elect. The Trump-backed World Liberty Financial crypto project is buying ETH and has scooped up around $2.5 million worth.
Some of crypto’s biggest bulls are joining the Bitcoin party. Miners MARA and HUT 8 have bought BTC worth $1.5 billion and $100 million, respectively.
The frenzy feels like a preview of Trump 2.0. If he sticks to his to his plan for Day 1, expect shockwaves in stocks, crypto, and beyond.
Read more: Trump’s latest crypto LINK-up: Genius or hype?
Expect more chaos
Charles Edwards, founder of Bitcoin and digital-asset hedge fund Capriole Investments, says: “Expect volatility, up and down”.
He adds that all roads are leading to more inflation, but Trump likes to “measure success from equities, so he won’t allow failure there.”
But Bitcoin’s fate is less certain if policy action on Trump’s Bitcoin Strategic Reserve idea is moved on the back burner, Edwards adds.
The hope was that Bitcoin’s record-breaking climb past $100K — all the way to $108K earlier this month — powered by Trump’s comeback would make it slightly volatility proof. Maybe not?
The bulls will have to keep the faith with crypto though, even as the rollercoaster continues around them.
US regulators just approved two Bitcoin+Ether ETFs by Hashdex and Franklin Templeton, respectively, which could be launched in January.
Maybe they can help stall the slide?
Read more: Big Tech is still swiping left on Bitcoin
