{"id":2039,"date":"2024-12-19T19:13:07","date_gmt":"2024-12-19T19:13:07","guid":{"rendered":"https:\/\/coinsvalue.net\/blog\/is-the-crypto-bull-run-over-top-exec-discusses-the-market-crash\/"},"modified":"2024-12-19T19:13:07","modified_gmt":"2024-12-19T19:13:07","slug":"is-the-crypto-bull-run-over-top-exec-discusses-the-market-crash","status":"publish","type":"post","link":"https:\/\/coinsvalue.net\/blog\/is-the-crypto-bull-run-over-top-exec-discusses-the-market-crash\/","title":{"rendered":"Is The Crypto Bull Run Over? Top Exec Discusses The Market Crash"},"content":{"rendered":"

The broader crypto market experienced a pronounced downturn following yesterday\u2019s Federal Open Market Committee (FOMC) meeting, held on December 18. After the US Federal Reserve delivered a 25-basis-point rate cut as anticipated, it also signaled fewer cuts in 2025 than previously expected.<\/p>\n

In response, the Bitcoin price fell by more than 5%, dropping below the $100,000 mark before showing slight signs of recovery. Altcoins saw across-the-board double-digit percentage declines.<\/p>\n

The Federal Reserve\u2019s decision\u2014while meeting expectations for a 25-basis-point reduction\u2014came with a notable shift in the projected rate trajectory for next year. Rather than the previously communicated four cuts, the central bank now anticipates only two, signaling a more cautious stance. This recalibration of future monetary policy sent ripples through the entire risk asset spectrum, prompting the S&P 500 to decline 3% and the Russell 2000 Small Cap Index to drop 4.4%.<\/p>\n

Is The Crypto Bull Run Over?<\/h2>\n

Within the crypto sector, the immediate aftermath was pronounced. Matt Hougan, Chief Investment Officer at Bitwise Asset Management, caused a sharp pullback in all risk assets.\u201d<\/p>\n

According to Hougan, Bitcoin\u2019s price action reflected heightened sensitivity to shifting monetary conditions. He noted that Bitcoin price drop was exaggerated by leveraged positions being liquidated. \u201c$600 million of leveraged long positions were blown out in today\u2019s market, exacerbating the pullback.\u201d<\/p>\n

Despite the steep correction, Hougan argued that the broader outlook remains constructive: \u201cCrypto now has internal momentum, and nothing about today\u2019s announcement interrupts the mega-trends: The pro-crypto reversal in Washington policy, rising institutional adoption and ETF flows, Bitcoin purchases by governments and corporations, and major tech breakthroughs in the programmable blockchain space.\u201d<\/p>\n

He pointed to technical indicators as a supporting factor for his thesis: \u201cMy favorite momentum gauge is still positive: Bitcoin\u2019s 10-day exponential moving average ($102k) is still above its 20-day exponential moving average ($99k).\u201d<\/p>\n

Hougan concluded his thread by maintaining that the shift in Fed expectations would not derail the longer-term bull run, stating: \u201cCrypto\u2019s in a multi-year bull market. 50bps of projected rate cuts won\u2019t change that.\u201d<\/p>\n

Other market observers offered similar interpretations of the Fed\u2019s communication strategy. Warren Pies, Founder of 3Fourteen Research, commented<\/a> via X: \u201cBy upping inflation forecast, lowering UE rate, and keeping cuts in place, the Fed has actually opened the path to more than 2 cuts in 2025 as data \u2018surprises\u2019 to the dovish side.\u201d<\/p>\n

Renowned macro analysts echoed this sentiment. Crypto analyst and podcaster Fejau (@fejau_inc) described the central bank\u2019s approach as a strategy designed to guide market expectations: \u201cFed forced itself into cutting this week so is using a hawkish 2025 FFR dot plot forecast to talk down long bond yields despite cutting today [\u2026] Welcome to macro psyop warfare. Smoke and mirrors baby.\u201d<\/p>\n

He characterized the dot plots as a tool for psychological influence rather than a strict roadmap: \u201cIt\u2019s important to view the dot plots not as a future forecast of events, but as a psychological tool [\u2026] The Fed has bought themselves time to allow further data to come out before they actually make a move [\u2026] Can almost guarantee you 2025 will not occur as is forecasted in their dots.\u201d<\/p>\n

Andreas Steno Larsen, CIO of Steno Global Macro Fund and CEO at Steno Research, offered<\/a> a similar assessment: \u201cBy hawking up all forecasts a lot, the Fed lowers the bar materially for cuts next year. It is a wise move, if you want to cut further, but do not want to precommit.\u201d<\/p>\n

At press time, Bitcoin traded at $101,766.<\/p>\n

\"Bitcoin<\/p>\n","protected":false},"excerpt":{"rendered":"

The broader crypto market experienced a pronounced downturn following yesterday\u2019s Federal Open Market Committee (FOMC) meeting, held on December 18. After the US Federal Reserve delivered a 25-basis-point rate cut as anticipated, it also signaled fewer cuts in 2025 than previously expected. In response, the Bitcoin price fell by more than 5%, dropping below the…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[56,183,36,1207,43,434,95,33,476],"class_list":["post-2039","post","type-post","status-publish","format-standard","hentry","category-cryptocurrency-market-news","tag-bitcoin","tag-bitwise","tag-crypto","tag-crypto-crash","tag-crypto-news","tag-crypto-prices","tag-cryptocurrency","tag-cryptocurrency-market-news","tag-matt-hougan"],"_links":{"self":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/2039","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/comments?post=2039"}],"version-history":[{"count":0,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/2039\/revisions"}],"wp:attachment":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media?parent=2039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/categories?post=2039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/tags?post=2039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}