It’s been a long time since my last article, and the market has moved significantly with a lot of volatility. However, it’s important to remember how quickly we crossed the $100k mark for Bitcoin ! So, what’s next for us ? I’ll share my thoughts in this article.
Market Situation
These past few days have been pretty tough for our wallets and our emotions. We hit a new all-time high (ATH) on Bitcoin, reaching $108,000 per coin, but then instantly took a massive hit that brought it down below $95k.
As always, altcoins suffered even more, except for some tokens like $HYPE, which is unique due to its massive airdrop and growing popularity. But that’s a topic for another article.
The big question is : why did this dump happen when everyone was so bullish and talking about a strong end-of-year rally for crypto ?
Well, the answer lies in the question. When a high percentage of people believe the market will move one way, it often does the opposite. But this time, there’s also another factor : the FED.
Interest Rate Cuts
This Wednesday, we had the final US Federal Reserve decision on interest rates for the year. Unsurprisingly, they decided to lower the rate by 0.25%, bringing it to 4.5%.
Source : tradingeconomics
However, the most important news was the forecast for 2025 interest rate decisions. Back in September, the FED stated there would likely be four federal rate cuts in 2025. But last Wednesday, the forecast was revised to only two cuts. That’s a huge difference, and investors didn’t react well across all markets.
What’s Next ?
Does this mark the end of the bull run? Nobody can predict the future with 100% certainty, but I strongly believe this is far from the bull run’s peak.
For the coming days, I expect low volatility as most people step away from the market to celebrate Christmas and the New Year. For my part, I will be back to writing articles for you ! The market is sure to bring us many surprises, sometimes bad, but also plenty of good ones. As long as you have a plan, you’ll be fine !
As always thank you for reading !
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Disclaimer : This is not a financial advice, you need to do your own research !
