Bitcoin Plunges Below $90K as Fear Grips Crypto Markets Amid Fed and Hack 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 2016 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 of Standard Chartered Bank predicts Bitcoin could drop to $80,000, citing ETF outflows and macroeconomic risks. 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, with analysts predicting further declines before any potential recovery.

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 recently dropped to $87,000, erasing billions from the market. Despite this, CZ posted on X (formerly Twitter) that Bitcoin could eventually reach $1 million, framing the current crash as a stepping stone toward higher valuations.

The Kobeissi Letter, a financial newsletter, noted that the crypto market lost over $300 billion in value within 24 hours, highlighting increased volatility. Prediction markets have also adjusted their expectations, lowering the probability of Bitcoin reaching $150,000 in 2025 to just 36%. TheStreet reports that while CZ remains bullish, the path to $1 million would require significant institutional adoption and favorable macroeconomic conditions.

Oklahoma Advances Bitcoin Reserve Act

Oklahoma is making strides in integrating Bitcoin into its financial reserves. Coinpedia Fintech News reports that the state’s Strategic Bitcoin Reserve Act has cleared the House committee and is now heading for a full House floor vote. If passed, the bill would allow Oklahoma to invest up to 10% of its public funds into 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. This hearing will address market structure and stablecoins, marking a significant step toward regulatory clarity in the U.S. crypto space.

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, potentially driving Ethereum’s price higher. Currently trading at $2,479, Ethereum has seen increased short positions, which could lead to a significant price surge if the market turns bullish.

However, the report also warns of bearish trends if Ethereum fails to break past $3,000. Whale activity and market sentiment remain key factors, with large-scale sell-offs potentially exacerbating downward pressure. The coming days will be crucial in determining Ethereum’s near-term trajectory.

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 the newly created position of President. Blockhead reports that Miyaguchi 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, with some in the Ethereum community questioning the foundation’s strategic direction. Vitalik Buterin, Ethereum’s co-founder, defended Miyaguchi, emphasizing her commitment to decentralization and the foundation’s mission. The leadership restructuring comes at a critical time as Ethereum faces competition from alternative blockchains and high transaction fees.

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