Sudden Bitcoin price fall sparks fears of further plunge

Bitcoin’s (BTC) price suddenly fell under $90,000 amid fears that the Federal Reserve may not cut interest as anticipated.

Bitcoin’s price fell from its mid-December high of about $108,250 to a lot of about $89,950 earlier today. This follows recent fears that the United States Federal Reserve may trigger a cryptocurrency crash with its approach to managing inflation.

A recent Forbes analysis warns that the cryptocurrency market cap was dangerously close to losing its key $3.2 trillion level. At the time of writing, CoinMarketCap’s market overview charts show that this level has already been lost, and the total market cap stands at $3.16 trillion—over 5.1% lower than the 24-hour peak of $3.33 trillion.

Alex Kuptsikevich, the FxPro chief market analyst, said in a recent note shared with Forbes that “the start of the new year has not been easy for the crypto market.” He added:

“The next target for the bears looks to be the $88,000 area. And in a negative scenario, bitcoin will face a quick pullback to $74,000. […]

Losing over 2% in 24 hours to $3.22 trillion, the market was back at the bottom of the consolidation range since the end of November.  […] It is with some trepidation that we now watch the eighth or so attempt to break below $3.20 trillion. Adding to the unease is the fact that last week’s upside momentum failed to develop, only attracting sellers.”

At the time of writing Bitcoin partially recovered, trading just under $91,850 — a price 3.06% lower than what it was 24 hours ago, and 8.66% lower than what it was 7 days ago. Kuptsikevich added:

“The next target for the bears looks to be the $88,000 area. And in a negative scenario, bitcoin will face a quick pullback to $74,000.”

The Crypto Fear & Greed Index stands at 61, indicating that the crypto market is now still ruled by greed. In such cases, the instrument is being interpreted as a warning of a possible imminent correction — but no instrument can guarantee any kind of market performance. The website reads:

“When Investors are getting too greedy, that means the market is due for a correction.”

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