Bitcoin suddenly rises to $100,000 after a massive $20 trillion price forecast

Updated 12/21 below. This article was originally published on December 20

Bitcoin fell sharply, falling along with stock markets after the Federal Reserve warned that inflation remains flat BlackRock has spooked the market.

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Bitcoin’s price fell about $90,000 per bitcoin, dragging down the broader cryptocurrency market and wiping out about $500 billion worth of the $3.2 trillion cryptocurrency market.

Bitcoin’s decline of about 10% over the past 24 hours was dwarfed by Ethereum and smaller top 10 coins — including Solana and Dogecoin — which again collapsed by between 15% and 25%.

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ForbesBlackRock quietly confirmed a devastating bombshell for Bitcoin pricesby Billy Bambrough

This week, Federal Reserve Chair Jerome Powell disappointed traders when he warned that interest rates would not fall as quickly as the Fed previously thought, cutting the number of planned cuts to just two in 2025, from four previously.

Update 12/21: The price of Bitcoin has bounced back, rising to within striking distance of $100,000 per BTC after the latest inflation data from the Personal Consumption Expenditures (PCE) index showed a smaller-than-expected rise of 2.4% in November, just below economists’ estimates. 2.5% They were surveyed by Reuters.

Other major cryptocurrencies that crashed lower, including Ethereum, Ripple’s

Meanwhile, Cathie Wood, founder of hedge fund Ark Investment Management, reiterated her bullish outlook for Bitcoin in a report. Bloomberg interviewand predicted that the price of Bitcoin would exceed $1 million by 2030 – which would give Bitcoin a market value of about $20 trillion.

“[Bitcoin] “It’s becoming more scarce than gold,” Wood said. “The difference between gold and bitcoin is that when the price of gold goes up, as it did, production goes up, the rate of increase in supply goes up — and that can’t happen.” With Bitcoin.”

Over the next few weeks, Bitcoin and cryptocurrency market observers expect the price of Bitcoin to remain vulnerable to violent fluctuations.

“In terms of what’s coming over the holidays, the first rule of bitcoin is that it’s always volatile in the same way that water is always wet,” James Toledano, chief operating officer at Unity Wallet, said in email comments.

“Its behavior is always mixed and there is no discernible pattern at the end of the year and the beginning of the next. Sometimes the price rises in the new year and at other times it falls. So, historically, we can say that Bitcoin usually appears,” Toledano added. Mixed behavior over Christmas and New Year,” he said, pointing to the inauguration of incoming US President Donald Trump on January 20 as an important date to monitor the Bitcoin and cryptocurrency market.

“The Fed’s comments were a wake-up call,” Danny Hewson, head of financial analysis at AJ Bell, said in email comments.

“Inflation has proven flat, and tax cuts and tariffs may be a recipe for recovery. Risk appetite has subsided. Trump 2.0 is a known unknown and no one wants to be overly exposed if the climate proves inhospitable.”

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ForbesThe Fed’s “biggest nightmare” suddenly became reality as Bitcoin prices soaredby Billy Bambrough

Meanwhile, Bitcoin price and cryptocurrency market watchers have warned of more volatility ahead.

“We expect to see increased volatility levels for both Ethereum and Bitcoin as we head into early 2025, particularly around the December 27, 2025 expiration settlement,” Nick Forrester, founder of decentralized finance (DeFi) protocol Derive, said in email comments. But he added that he expects the price of Bitcoin and the broader cryptocurrency market to recover until 2025.

“We are observing a trend where funds and high net worth individuals are moving to options with longer expirations, such as those set for September onwards, reflecting a positive outlook for 2025. This shift from open interest is evident in calls that significantly outnumber puts Derive.xyz , which indicates strong optimism in the market.