Is The Crypto Bull Run Over? Top Exec Discusses The Crash

Is The Crypto Bull Run Over? Top Exec Discusses The Crash

Este artículo también está disponible en español.

The broader crypto market skilled a pronounced downturn following yesterday’s Federal Open Market Committee (FOMC) assembly, held on December 18. After the US Federal Reserve delivered a 25-basis-point price reduce as anticipated, it additionally signaled fewer cuts in 2025 than beforehand anticipated.

In response, the Bitcoin worth fell by greater than 5%, dropping under the $100,000 mark earlier than displaying slight indicators of restoration. Altcoins noticed across-the-board double-digit proportion declines.

The Federal Reserve’s choice—whereas assembly expectations for a 25-basis-point discount—got here with a notable shift within the projected price trajectory for subsequent yr. Reasonably than the beforehand communicated 4 cuts, the central financial institution now anticipates solely two, signaling a extra cautious stance. This recalibration of future financial coverage despatched ripples by your complete threat asset spectrum, prompting the S&P 500 to say no 3% and the Russell 2000 Small Cap Index to drop 4.4%.

Is The Crypto Bull Run Over?

Throughout the crypto sector, the speedy aftermath was pronounced. Matt Hougan, Chief Funding Officer at Bitwise Asset Administration, addressed the market situations this morning by way of X, writing: “The big catalyst today was the Fed announcement […] The Fed cut rates by 25 basis points as expected, but lowered expectations for next year from 4 cuts to 2 cuts. Higher rates are bad for risk assets, and the Fed’s announcement caused a sharp pullback in all risk assets.”

Associated Studying

In response to Hougan, Bitcoin’s worth motion mirrored heightened sensitivity to shifting financial situations. He famous that Bitcoin worth drop was exaggerated by leveraged positions being liquidated. “$600 million of leveraged long positions were blown out in today’s market, exacerbating the pullback.”

Regardless of the steep correction, Hougan argued that the broader outlook stays constructive: “Crypto now has internal momentum, and nothing about today’s announcement interrupts the mega-trends: The pro-crypto reversal in Washington policy, rising institutional adoption and ETF flows, Bitcoin purchases by governments and corporations, and major tech breakthroughs in the programmable blockchain space.”

He pointed to technical indicators as a supporting issue for his thesis: “My favorite momentum gauge is still positive: Bitcoin’s 10-day exponential moving average ($102k) is still above its 20-day exponential moving average ($99k).”

Associated Studying

Hougan concluded his thread by sustaining that the shift in Fed expectations wouldn’t derail the longer-term bull run, stating: “Crypto’s in a multi-year bull market. 50bps of projected rate cuts won’t change that.”

Different market observers provided related interpretations of the Fed’s communication technique. Warren Pies, Founding father of 3Fourteen Analysis, commented by way of X: “By upping inflation forecast, lowering UE rate, and keeping cuts in place, the Fed has actually opened the path to more than 2 cuts in 2025 as data ‘surprises’ to the dovish side.”

Famend macro analysts echoed this sentiment. Crypto analyst and podcaster Fejau (@fejau_inc) described the central financial institution’s strategy as a method designed to information market expectations: “Fed forced itself into cutting this week so is using a hawkish 2025 FFR dot plot forecast to talk down long bond yields despite cutting today […] Welcome to macro psyop warfare. Smoke and mirrors baby.”

He characterised the dot plots as a device for psychological affect moderately than a strict roadmap: “It’s important to view the dot plots not as a future forecast of events, but as a psychological tool […] The Fed has bought themselves time to allow further data to come out before they actually make a move […] Can almost guarantee you 2025 will not occur as is forecasted in their dots.”

Andreas Steno Larsen, CIO of Steno World Macro Fund and CEO at Steno Analysis, provided the same evaluation: “By hawking up all forecasts a lot, the Fed lowers the bar materially for cuts next year. It is a wise move, if you want to cut further, but do not want to precommit.”

At press time, Bitcoin traded at $101,766.

Bitcoin worth holds above the 20 day EMA, 1-day chart | Supply: BTCUSDT on TradingView.com

Featured picture created with DALL.E, chart from TradingView.com

Supply hyperlink

bitcoin
Bitcoin (BTC) $ 104,911.11 0.45%
ethereum
Ethereum (ETH) $ 2,611.14 0.60%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 2.21 1.62%
bnb
BNB (BNB) $ 664.67 0.46%
solana
Solana (SOL) $ 153.61 0.90%
usd-coin
USDC (USDC) $ 1.00 0.00%
dogecoin
Dogecoin (DOGE) $ 0.188462 2.55%
tron
TRON (TRX) $ 0.274817 1.47%
cardano
Cardano (ADA) $ 0.668268 2.58%
staked-ether
Lido Staked Ether (STETH) $ 2,609.99 0.72%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 104,699.05 0.65%
hyperliquid
Hyperliquid (HYPE) $ 35.38 1.40%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,138.37 0.39%
sui
Sui (SUI) $ 3.17 2.45%
chainlink
Chainlink (LINK) $ 13.83 2.14%
avalanche-2
Avalanche (AVAX) $ 20.19 4.56%
leo-token
LEO Token (LEO) $ 9.07 1.19%
stellar
Stellar (XLM) $ 0.267017 2.15%
bitcoin-cash
Bitcoin Cash (BCH) $ 401.63 0.18%
the-open-network
Toncoin (TON) $ 3.18 0.12%
shiba-inu
Shiba Inu (SHIB) $ 0.000013 1.61%
usds
USDS (USDS) $ 0.999972 0.01%
hedera-hashgraph
Hedera (HBAR) $ 0.167344 2.77%
weth
WETH (WETH) $ 2,614.99 0.92%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,788.72 0.59%
litecoin
Litecoin (LTC) $ 88.22 1.83%
polkadot
Polkadot (DOT) $ 4.02 3.15%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.02%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.06%
monero
Monero (XMR) $ 315.49 8.45%
bitget-token
Bitget Token (BGB) $ 4.77 0.74%
pepe
Pepe (PEPE) $ 0.000012 3.29%
pi-network
Pi Network (PI) $ 0.646311 0.23%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 104,948.12 0.39%
whitebit
WhiteBIT Coin (WBT) $ 31.28 0.22%
aave
Aave (AAVE) $ 264.44 0.03%
uniswap
Uniswap (UNI) $ 6.31 4.29%
dai
Dai (DAI) $ 1.00 0.01%
ethena-staked-usde
Ethena Staked USDe (SUSDE) $ 1.18 0.00%
bittensor
Bittensor (TAO) $ 380.69 1.83%
aptos
Aptos (APT) $ 4.80 3.03%
okb
OKB (OKB) $ 50.04 0.30%
crypto-com-chain
Cronos (CRO) $ 0.100244 1.57%
near
NEAR Protocol (NEAR) $ 2.44 2.71%
blackrock-usd-institutional-digital-liquidity-fund
BlackRock USD Institutional Digital Liquidity Fund (BUIDL) $ 1.00 0.00%
jito-staked-sol
Jito Staked SOL (JITOSOL) $ 185.54 0.65%
internet-computer
Internet Computer (ICP) $ 5.22 0.25%
ethereum-classic
Ethereum Classic (ETC) $ 17.27 1.69%
ondo-finance
Ondo (ONDO) $ 0.831558 2.22%
susds
sUSDS (SUSDS) $ 1.05 0.02%
tokenize-xchange
Tokenize Xchange (TKX) $ 31.25 4.15%
gatechain-token
Gate (GT) $ 19.18 0.18%
mantle
Mantle (MNT) $ 0.663719 2.20%
kaspa
Kaspa (KAS) $ 0.083322 5.02%
usd1-wlfi
USD1 (USD1) $ 1.00 0.05%
official-trump
Official Trump (TRUMP) $ 10.81 3.28%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 0.800259 2.30%
vechain
VeChain (VET) $ 0.02371 3.80%
render-token
Render (RENDER) $ 3.75 2.92%
cosmos
Cosmos Hub (ATOM) $ 4.27 3.42%
ethena
Ethena (ENA) $ 0.314586 6.54%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.213526 0.83%
lombard-staked-btc
Lombard Staked BTC (LBTC) $ 104,107.89 1.06%
fasttoken
Fasttoken (FTN) $ 4.43 0.09%
worldcoin-wld
Worldcoin (WLD) $ 1.14 3.90%
arbitrum
Arbitrum (ARB) $ 0.359363 0.13%
filecoin
Filecoin (FIL) $ 2.57 2.49%
algorand
Algorand (ALGO) $ 0.191463 2.99%
first-digital-usd
First Digital USD (FDUSD) $ 0.999998 0.21%
binance-peg-weth
Binance-Peg WETH (WETH) $ 2,614.73 0.93%
jupiter-perpetuals-liquidity-provider-token
Jupiter Perpetuals Liquidity Provider Token (JLP) $ 4.44 0.17%
jupiter-exchange-solana
Jupiter (JUP) $ 0.517724 4.24%
celestia
Celestia (TIA) $ 2.16 3.72%
kucoin-shares
KuCoin (KCS) $ 11.17 0.11%
binance-staked-sol
Binance Staked SOL (BNSOL) $ 161.89 1.48%
usdt0
USDT0 (USDT0) $ 1.00 0.04%
nexo
NEXO (NEXO) $ 1.25 0.30%
sonic-3
Sonic (S) $ 0.390169 3.90%
rocket-pool-eth
Rocket Pool ETH (RETH) $ 2,973.25 0.82%
bonk
Bonk (BONK) $ 0.000016 5.82%
injective-protocol
Injective (INJ) $ 12.09 3.44%
flare-networks
Flare (FLR) $ 0.017751 2.99%
virtual-protocol
Virtuals Protocol (VIRTUAL) $ 1.78 7.44%
kelp-dao-restaked-eth
Kelp DAO Restaked ETH (RSETH) $ 2,732.15 0.84%
blockstack
Stacks (STX) $ 0.748703 4.64%
story-2
Story (IP) $ 4.04 3.38%
optimism
Optimism (OP) $ 0.629259 5.25%
spx6900
SPX6900 (SPX) $ 1.15 6.84%
sei-network
Sei (SEI) $ 0.193567 2.49%
immutable-x
Immutable (IMX) $ 0.548315 4.96%
binance-bridged-usdc-bnb-smart-chain
Binance Bridged USDC (BNB Smart Chain) (USDC) $ 1.00 0.02%
eos
EOS (EOS) $ 0.659497 1.02%
paypal-usd
PayPal USD (PYUSD) $ 1.00 0.02%
xdce-crowd-sale
XDC Network (XDC) $ 0.059936 0.87%
vaulta
Vaulta (A) $ 0.617986 3.28%
solv-btc
Solv Protocol BTC (SOLVBTC) $ 104,770.07 0.40%
mantle-staked-ether
Mantle Staked Ether (METH) $ 2,791.44 0.86%
polygon-bridged-usdt-polygon
Polygon Bridged USDT (Polygon) (USDT) $ 1.00 0.04%
fartcoin
Fartcoin (FARTCOIN) $ 0.950754 7.03%
Scroll to Top