Bitcoin Price Sudden Plunge Raises $3.2 Trillion Crypto Crash Fears

On By Littum

Bitcoin has suddenly dropped below 91,000 dollars per bitcoin, setting alarm bells ringing that the Federal Reserve may be about to trigger a bitcoin price crash.

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Bitcoin price has fallen sharply from its post-Donald Trump election victory peak of nearly $110,000 per bitcoin – despite Trump confirming he is planning a bitcoin price game-changer.

Now that the Fed has been warned of a looming crisis, bitcoin and crypto traders are nervously watching to see if the combined crypto market will fall below the pivotal $3.2 trillion level.

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“The start of the new year has not been easy for the crypto market,” Alex Kuptsikevich, FxPro’s chief market analyst, said in an email.

“The next target for the bears seems to be the $88,000 area. And in a negative scenario, bitcoin will face a quick pullback to $74,000.”

The bitcoin and crypto market has struggled to hold on to its gains since the Trump election, with momentum being squeezed by a series of positive economic updates that mean the Federal Reserve is less likely to cut interest rates this year.

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“With a loss of over 2% in 24 hours to $3.22 trillion, the market was back at the bottom of the consolidation range since late November,” Kuptsikevich wrote.

“The promising start to the year failed. It is with some trepidation that we now see the eighth attempt to break below $3.20 trillion. Adding to the unease is the fact that last week’s upward momentum failed to develop, which only attract sellers.”

The combined crypto market surged to a record high of nearly $4 trillion in the wake of Trump’s presidential election victory as traders and investors cheered the incoming administration’s pro-crypto agenda.