Bitcoin Price Analysis: BTC price at $97,000 as Fed’s hawkish stance shakes cryptocurrency markets

Thursday saw a significant decline in the Bitcoin market as Bitcoin (Bitcoin) fell 4.8% over 24 hours to below $96,000 before recovering to $97,000. The decline comes after unusually hawkish comments by Federal Reserve Chairman Jerome Powell about cutting interest rates in 2025.

Bitcoin and cryptocurrency market reaction to hawkish Fed

With the CoinDesk 20 Index down more than 10%, the sell-off was particularly intense in the larger Bitcoin market. With large icons like Ethereum ETH/USD Down 10.8% to less than $3,500 and others including Cardano ADA/USD,Chainlink Link/USDand avalanche [[AVAX/USD]]With losses ranging from 15-20%, altcoins bore the brunt of the downturn.

Data from CoinGlass shows that $1.2 billion worth of cryptocurrency derivatives positions were liquidated within 24 hours, so market volatility has led to significant liquidations in leveraged positions. More than $1 billion of these holdings were long, indicating an optimistic stance before the decline.

Institutional functioning and market dynamics

Institutional interest in Bitcoin Bitcoin/US Dollar Strong even with the current market decline. Major Bitcoin miner MARA has purchased $1.5 billion worth of Bitcoin over the past two months, boosting its total holdings to 44,394 BTC. Backed by convertible securities, this aggressive accumulation approach reflects significant institutional confidence in Bitcoin’s long-term future.

With Allo securing a $100 million credit facility collateralized by Bitcoin, demonstrating the increasing integration of Bitcoin into traditional financial structures, the broader market is also seeing increased institutional participation.

Technical analysis of Bitcoin/USD

Bitcoin/US Dollar

Technical indicators, especially the Bollinger Band study conducted by John Bollinger, point to a possible Bitcoin trend towards another bullish rally. When the upper band of the Bollinger Band is touched, the recent price action may indicate the approach of a ‘bulling’ pattern and thus may lead to new all-time highs.

BTC price forecast

Industry analysts have provided various predictions for future Bitcoin prices:

• Ledn’s Mauricio Di Bartolomeo expects Bitcoin to reach $132,500, the equivalent of 50 ounces of gold. gold
• Robert Kiyosaki has set a goal of $350,000 by 2025
• A more ambitious forecast from Perianne Boring suggests $800,000 based on a stock-to-flow model
• PlanB expects the average valuation to reach $500,000 by 2025, with potential peaks reaching $1 million

Market forecast

Although it is notable, the current adjustment appears to be a natural consolidation after Bitcoin’s recent surge above $100,000. As Morph co-founder Azeem Khan points out, “When you look at year-on-year growth and look at it, a pullback like this looks healthy.”

The way the market responded to the Federal Reserve’s dovish expectations of interest rate cuts underscores the extent to which macroeconomic events can impact cryptocurrency prices. However, strong institutional participation and technical indicators point to a short decline at present with the potential for continued upward momentum in 2025.