Bitcoin and crypto prices fell sharply, as did stock markets, driven lower by Tesla billionaire Elon Musk issuing a surprise warning on the price of Bitcoin.
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The price of bitcoin, which topped $100,000 per bitcoin earlier this week, has fallen to around $92,000 despite a Wall Street investment bank’s massive bet on a game-changing bitcoin.
Now, as the bitcoin and crypto market prepares for an “imminent” Elon Musk would collapse at the end of March.
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Federal Reserve Chairman Jerome Powell is expected to help support the price of Bitcoin through the end of the year. … (+)
“As expected, like almost every other year, there will be time to sell at the end of the first quarter…and wait for positive fiat liquidity conditions to re-emerge in the third quarter,” said Hayes, co-founder. of bitcoin and crypto derivatives pioneer BitMex, who later created the Maelstrom investment fund, wrote in a blog post.
The bitcoin price and crypto market are recovering despite periods in which dollar liquidity rises and falls as dollar liquidity declines, according to Hayes, who previously predicted the bitcoin price would collapse around of the inauguration of the new American president Donald Trump.
“I continue to believe this is a potential negative factor that could weigh on the market in the near term, but I must weigh the boost from dollar liquidity against it,” Hayes wrote. “Bitcoin, for now, moves and moves as the pace of dollar issuance changes.”
According to Hayes, the Treasury’s general account will be on the verge of being emptied toward the end of the first quarter, made worse by the approach of the U.S. debt ceiling and the April 15 tax payment deadline.
Bitcoin price fell this week as traders reevaluate the Federal Reserve’s interest rate cut outlook for 2025 in light of the latest robust data showing the U.S. economy remained strong.
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The price of Bitcoin has fallen slightly but remains much higher than a year ago.
“The Trump dumping that some predicted after his inauguration as US president has apparently accelerated as the cryptocurrency market plunges deep into the red zone,” said Petr Kozyakov, chief executive of crypto payments platform Mercuryo , in an email. comments.
In December, Trump confirmed his intention to create a US strategic Bitcoin reserve. “We’re going to do something great with crypto because we don’t want China, or anyone else…but others are adopting it and we want to be ahead of it,” said Trump. CNBC.
“Markets are no longer euphoric that Bitcoin is entering a new era where even the United States will hold a strategic reserve of Bitcoin. Instead, Bitcoin’s role as an ultra-risk-averse asset and risk-free has resurfaced amid signs that the US Federal Reserve may keep interest rates high for longer than expected.
