Bitcoin Plummets Below $90K Amid Fed Uncertainty and Market Chaos

‘Don’t Buy The Dip’—Bitcoin Faces Extreme Volatility Amid Fed Concerns

Bitcoin and other cryptocurrencies are experiencing significant turbulence following a major hack at the Dubai-based Bybit exchange. The hack, which caused a temporary price drop, has been compounded by fears of market suppression and broader economic uncertainties. According to Forbes, the Bitcoin price fell below $90,000, marking its lowest level since the aftermath of Donald Trump’s 2020 election victory. The Crypto Fear & Greed Index has plunged into "extreme fear" territory, reflecting the market's current sentiment.

Economists are warning of a potential stagflation scenario in the U.S., which could further impact Bitcoin prices. Geoff Kendrick from Standard Chartered Bank predicts that Bitcoin could drop to $80,000, citing ETF outflows and declining market sentiment. Meanwhile, Elon Musk’s proposed overhaul of the Federal Reserve adds another layer of uncertainty to the market. Forbes highlights that traders are advised to remain cautious, as the Federal Reserve’s next moves could significantly influence Bitcoin’s trajectory.

Former Binance CEO Predicts $1 Million Bitcoin Despite Market Crash

Changpeng "CZ" Zhao, the former CEO of Binance, remains optimistic about Bitcoin’s long-term potential, even as the cryptocurrency faces a sharp downturn. According to TheStreet, Bitcoin’s price recently dropped to $87,000, erasing billions from the market. Ethereum and Solana also saw significant declines, with Ethereum falling 10.5% to $2,388 and Solana dropping 13% to $137.87.

The Kobeissi Letter, a financial newsletter, attributes the downturn to heightened market volatility and liquidity issues. Despite this, CZ believes Bitcoin could eventually reach $1 million, citing historical patterns of recovery and growth. However, prediction markets have lowered their expectations for Bitcoin in 2025, with the probability of reaching $150,000 dropping to 36%. TheStreet notes that achieving a $1 million valuation would require unprecedented levels of investment and adoption.

Oklahoma Advances Bitcoin Reserve Act

Oklahoma is making strides in integrating Bitcoin into its financial reserves. Coinpedia reports that the state’s Strategic Bitcoin Reserve Act has cleared the House committee and is now set for a full House vote. If passed, the bill would allow Oklahoma to invest up to 10% of its public funds in Bitcoin or other digital assets with a market cap exceeding $500 billion.

Additionally, Senator Cynthia Lummis is preparing for the first digital asset subcommittee hearing, which aims to shape bipartisan crypto legislation. The hearing will focus on market structure and stablecoins, marking a significant step toward regulatory clarity in the crypto space. Coinpedia emphasizes the importance of these developments in fostering institutional adoption of digital assets.

Ethereum Faces $2 Billion Liquidation Risk

Ethereum is at a critical juncture, with over $2 billion in short positions at risk of liquidation if the price climbs to $3,000. According to The Currency Analytics, this could trigger a short squeeze, driving prices higher as traders rush to cover their positions. Currently trading at $2,479, Ethereum’s price action is being closely monitored for signs of a breakout.

Market sentiment remains mixed, with some analysts predicting a bullish reversal based on technical patterns. However, the recent sell-off by a major Ethereum whale has added to market uncertainty. The Currency Analytics highlights that Ethereum’s next moves could significantly impact its trajectory in the coming weeks.

Aya Miyaguchi Named President of Ethereum Foundation

The Ethereum Foundation has announced a leadership shake-up, with Aya Miyaguchi transitioning from her role as Executive Director to President. Blockhead reports that Miyaguchi’s new position will focus on expanding institutional relationships and advancing the foundation’s vision. Her tenure has been marked by significant milestones, including Ethereum’s transition to proof-of-stake.

However, her leadership has faced criticism from some community members, who argue that Ethereum has lost its edge compared to rival blockchains like Solana. Vitalik Buterin, Ethereum’s co-founder, defended Miyaguchi, emphasizing her contributions to the network’s decentralization and long-term mission. Blockhead notes that the leadership restructuring comes at a critical time, as Ethereum faces mounting competition and ecosystem challenges.

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