Bitcoin Plunges to $85K: Recession Panic Fuels Crypto Market Rebound

Bitcoin Price Predictions and Market Trends

According to Forbes, Bitcoin's price has experienced significant fluctuations recently. After reaching a peak of $110,000 per Bitcoin in January, it has now dropped to around $85,000. This decline comes amidst warnings from the Federal Reserve about a potential recession, which could act as a "big catalyst" for Bitcoin's price, according to Robbie Mitchnick, BlackRock's head of digital assets. Mitchnick highlighted that responses to recessions, such as increased fiscal spending and monetary stimulus, have historically boosted Bitcoin's value.

Additionally, BlackRock's iShares Bitcoin Trust (IBIT) has reached approximately $50 billion in assets under management, contributing to the U.S. spot Bitcoin ETFs surpassing $100 billion in net assets for the first time in November. Larry Fink, BlackRock's CEO, has also emphasized the potential of Bitcoin, particularly in light of inflationary pressures caused by trade policies.

"I don’t know if we’ll have a recession or not, but a recession would be a big catalyst for Bitcoin," said Robbie Mitchnick, BlackRock's head of digital assets.

Bitcoin Price	Peak	Current
January 2025	$110,000	$85,000

Key Takeaways:

Bitcoin's price has dropped from $110,000 to $85,000.
BlackRock's Bitcoin ETF assets have reached $50 billion.
Recession fears could act as a catalyst for Bitcoin's growth.

Crypto Market Updates: Bitcoin and Altcoins

The Economic Times reports that Bitcoin has risen slightly above $86,000, showing a modest recovery. Altcoins like Avalanche and Solana have also seen gains of up to 10%. The overall crypto market cap has grown by 2.30% in the last 24 hours, reaching $2.83 trillion. However, the market remains volatile, with some altcoins trading sideways.

Ethereum has also shown minor gains, with its price standing at $2,037 on international exchanges. Large investors have been steadily accumulating Ethereum, with wallets holding at least $100,000 worth of Ether increasing from 70,000 to over 75,000 between March 10 and March 22.

Cryptocurrency	Price	Change
Bitcoin	$86,000	+2.30%
Ethereum	$2,037	+1.89%

Key Takeaways:

Bitcoin is trading above $86,000 with a 2.30% market cap growth.
Ethereum's price has increased to $2,037, with significant accumulation by large investors.
Altcoins like Avalanche and Solana have seen gains of up to 10%.

Fidelity's Blockchain Expansion

Cointelegraph reports that Fidelity Investments is planning to launch a tokenized version of its Fidelity Treasury Digital Fund on Ethereum. The fund, named "OnChain," aims to provide greater transparency and tracking of transactions. The $80 million fund consists almost entirely of U.S. Treasury bills and is expected to take effect on May 30, pending regulatory approval.

Fidelity's move aligns with a growing trend among asset managers to tokenize Treasury products. The RWA tokenization market for Treasury products is currently valued at $4.78 billion, with Ethereum hosting over $3.3 billion worth of these assets. BlackRock's head of crypto, Robbie Mitchnick, has also highlighted Ethereum as the "natural default answer" for tokenization due to its decentralization and security.

"There was no question that the blockchain we would start our tokenization on would be Ethereum," said Robbie Mitchnick, BlackRock's head of crypto.

Key Takeaways:

Fidelity plans to launch "OnChain," a tokenized Treasury fund, on Ethereum.
The RWA tokenization market is valued at $4.78 billion, with Ethereum leading the space.
BlackRock and Fidelity emphasize Ethereum's advantages for tokenization.

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