Crypto Markets on Edge: Looming Deregulation and Fed Moves Signal Turbulent Times Ahead

The Great Crypto Crash

According to The Atlantic, the cryptocurrency market is on the brink of a significant upheaval as deregulation looms under the incoming Trump administration. Experts predict an initial boom in crypto prices followed by a catastrophic bust that could lead to widespread financial instability. Dennis Kelleher from Better Markets warns about increased leverage and opacity within financial systems due to lax regulations, potentially leading to trillion-dollar consequences.

Fed Decisions Impacting Crypto Prices

The Motley Fool reports that recent decisions by the Federal Reserve may pose challenges for cryptocurrencies in 2025. With fewer rate cuts than anticipated and continued quantitative tightening (QT), liquidity conditions are expected to tighten, affecting altcoins more severely than Bitcoin. Despite these short-term hurdles, long-term growth prospects remain strong with institutional interest continuing to rise.

Crypto Market Liquidations Surge

As reported by CryptoGlobe, over $150 million was liquidated in just one hour following Bitcoin's drop below $100,000. This sell-off has been attributed partly to rising U.S. Treasury yields and profit-taking among investors after substantial gains. Ethereum and other major cryptocurrencies have also seen significant declines amid this downturn.

Arthur Hayes Predicts Bitcoin Peak

DLNews highlights Arthur Hayes' prediction that Bitcoin will reach a local peak at the end of Q1 2025 before experiencing another rally later in the year when fiat liquidity improves post-tax season. He draws parallels with last year's performance where similar patterns were observed due to fluctuations in dollar liquidity driven by government borrowing activities.

Economic Data Spooks Investors

A report from Decrypt reveals how new economic data led major cryptocurrencies like Bitcoin, Dogecoin, and Solana into sharp declines early Tuesday morning amidst fears surrounding job openings exceeding expectations alongside diminishing hopes for imminent Fed rate cuts which had previously buoyed markets throughout much of last year’s bull run phase across both equities & digital assets alike!

Cautionary Signals for BTC Amid SPX Movements

An article on Yahoo Finance discusses cautionary signals emerging from movements within S&P indices impacting broader sentiment towards riskier asset classes including cryptos such as BTC. However, specific details regarding implications remain sparse given limited content provided therein.

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