Bitwise CIO downplays price ‘hiccup’ amid Bitcoin bull trend after FOMC shakes markets

Share This Post

Bitcoin’s price experienced a sharp pullback following the US Federal Reserve’s recent rate cut, but market experts like Bitwise CIO Matt Hougan remain optimistic about the asset’s long-term trajectory.

On Dec. 18, the Federal Reserve announced a 25-basis-point rate cut, scaling back its outlook for 2024 to two cuts instead of the previously expected four.

Also, and perhaps more significantly for Bitcoin, Chair Jerome Powell added that the Fed cannot hold BTC under current regulations while responding to inquiries about President-elect Donald Trump’s strategic reserve plans.

This triggered significant market reactions, with Bitcoin’s price falling to as low as $98,839 before stabilizing at $101,586 earlier today. Similarly, other top digital assets like Ethereum, XRP, and Solana also recorded losses of around 5%, 5.5%, and 3%, respectively.

Data from CoinGlass shows that this red market performance led to around $800 million in liquidation, impacting more than 270,000 traders. Traders speculating on upward price movement suffered the most losses, losing $662 million during the last 24 hours.

Crypto Market Liquidation
Crypto Market Liquidation (Source: CoinGlass)

Beyond crypto, traditional markets like the S&P 500 and the Russell 2000 Index experienced 3% and 4.4% declines, respectively.

Bitcoin’s long-term trajectory

Despite this pullback, Hougan reassured investors that Bitcoin’s fundamentals remain strong.

The Bitwise CIO explained that Bitcoin’s recent resilience stems from internal crypto-specific factors, such as growing institutional adoption, pro-crypto shifts in US policy, and government and corporate Bitcoin purchases.

He also highlighted significant blockchain advancements and increasing ETF flows as additional drivers of market strength.

Moreover, Bitcoin’s technical indicators remain favorable, with its 10-day exponential moving average ($102,000) still above the 20-day exponential moving average ($99,000). Hougan views this as a bullish signal, reinforcing his belief that the current dip is a short-term fluctuation rather than the end of the ongoing bull market.

Despite external pressures, Hougan predicted that Bitcoin would continue its multi-year upward trajectory, buoyed by strong adoption trends and technological advancements in the crypto space.

He concluded:

“Crypto’s in a multi-year bull market. 50bps of projected rate cuts won’t change that.”

The post Bitwise CIO downplays price ‘hiccup’ amid Bitcoin bull trend after FOMC shakes markets appeared first on CryptoSlate.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

New Crypto Presales to Invest in March 2025

The post New Crypto Presales to Invest in March 2025 appeared first on Coinpedia Fintech News The crypto market is constantly evolving, and March 2025 presents a prime opportunity for investors to

XRP Price Stands Strong Above $2 Amid Crypto Bloodbath—Is This the Next Big Thing in the Crypto Space?

The post XRP Price Stands Strong Above $2 Amid Crypto Bloodbath—Is This the Next Big Thing in the Crypto Space appeared first on Coinpedia Fintech News The uncertainly prevailing over the stock

Dogecoin (DOGE) Under Pressure—Continues Sliding Into Bear Territory

Dogecoin started a fresh decline below the $01850 zone against the US Dollar DOGE tested $01450 and is now consolidating below the $01650 resistance DOGE price started a fresh decline below the

Best Crypto to Buy: Why Mind of Pepe Could Be the Next 100x Meme Coin

The post Best Crypto to Buy: Why Mind of Pepe Could Be the Next 100x Meme Coin appeared first on Coinpedia Fintech News MIND of Pepe (MIND), an emerging AI-driven meme coin, continues its impressive

Bitcoin (BTC), Ethereum (ETH), and XRP Price Prediction Today (For March 11)

The post Bitcoin (BTC), Ethereum (ETH), and XRP Price Prediction Today (For March 11) appeared first on Coinpedia Fintech News The cryptocurrency market, led by Bitcoin (BTC) and Ethereum (ETH), has

Sam Bankman-Fried Seeks Trump Pardon After FTX Collapse, But What Are His Odds?

The post Sam Bankman-Fried Seeks Trump Pardon After FTX Collapse, But What Are His Odds appeared first on Coinpedia Fintech News Three years ago, Sam Bankman-Fried was a big name in Washington, DC,