On Sunday, Dec. 22, 2024, bitcoin’s price dropped under the $96,000 mark, hitting a low of $95,135 per unit. This dip comes after bitcoin soared past the $100,000 milestone earlier this month, marking an impressive run for the cryptocurrency.
Traders Cash In, Bitcoin Tanks to $95K in Sunday Sell-Off
Analysts chalk up the recent price swings to investors locking in profits from bitcoin’s meteoric rise, paired with ongoing global economic uncertainty. Sentiment in the market has also been swayed by President-elect Donald Trump’s pro-crypto stance. His proposals include creating a national bitcoin reserve and appointing crypto-friendly leaders to key regulatory roles.
Bitcoin reached an intraday low of $95,135.
The decline followed a statement by Federal Reserve Chair Jerome Powell, who announced that rate cuts would slow in 2025. Powell also emphasized that the U.S. central bank is prohibited from holding bitcoin as a reserve asset. Since his remarks last week, bitcoin has fallen more than 11% from its Dec. 17 peak of $108,364.
Despite the current slump, experts remain hopeful about bitcoin’s future. Some forecasts suggest it could climb to $150,000 or beyond by 2025, fueled by increasing institutional interest and favorable regulatory policies under the Trump administration. Meanwhile, Sunday’s price drop triggered $258.26 million in liquidations across derivatives markets, including $30.12 million from bitcoin long positions.
Caution lingers among investors and traders, given the cryptocurrency market’s famously wild price movements. For some, this downturn signals a healthy correction within a broader upward trend, while others see it as a reason to tread carefully. Time, as always, will reveal what lies ahead.
