According to industry experts, Friday the Bitcoin (CRYPTO:BTC) fell about 10% to hit a provisional low of $92,250, influenced by the Federal Reserve’s recent 0.25% rate cut and a combination of profit-taking and technical forces market.
Ethereum (CRYPTO:ETH) followed Bitcoin, falling 16% to $3,115.
Ripple (CRYPTO:XRP) saw a decline of 18% and BNB (CRYPTO:BNB) fell 12% to $618.
Among the smallest altcoins, Dogecoin (CRYPTO:DOGE) fell 28%, while Shiba Inu (CRYPTO: SHIB) e SUI (CRYPTO:SUI) have each lost around 25% of their value over the past 24 hours.
Speaking with Benzinga, Forest Baico-founder of Foresight Venturesattributed this decline to the Federal Reserve’s hawkish attitude and reduced expectations of future rate cuts, which reduced macro liquidity.
“Bitcoin’s recent decline marks the first significant market adjustment since the post-US election euphoria,” Bai said, noting that these 20% corrections are typical of bull markets and represent a consolidation rather than a reversal.
Despite the short-term volatility, Bai remains optimistic thanks to solid institutional inflows and on-chain data showing long-term holders capitalizing on cash to make gains, with $2.1 billion in profits reported.
However, market dynamics affect not only monetary policy but also investor behavior.
Raj Kapoor of the Blockchain Governance Council told Benzinga that the recent rate cut, while expected, had a profound effect on speculative assets like cryptocurrencies.
“The collapse of cryptocurrencies is not just a story of falling numbers, but a series of interconnected forces,” explains Kapoor, underlining profit-taking and panic selling, exacerbated by technical analysis indicating mean reversion and phases of Wyckoff method.
Despite the dip, Kapoor sees potential signs of recovery thanks to Bitcoin’s cup-and-handle pattern, which suggests a future rally towards $120,000, although he warns of the possibility of further declines before a true recovery.
Alex Kuptsikevichchief market analyst of FxProprovides a negative outlook on the market trajectory: Over the past 24 hours, the total cryptocurrency market capitalization fell 4.4% to $3.36 trillion, a decline of more than 11% from its peak.
“Bitcoin moved back below $100K, finding support at $96K on Friday morning,” he told Benzinga in a note, adding that a break below $94.5K could signal further bearish trends.
According to data from CoinGlass, the cryptocurrency market liquidated $1.38 billion over the past day, of which $1.21 billion came from long positions, indicating a sharp correction.
The current market scenario reflects a shift away from speculative investing towards areas such as tokenization of real assets and decentralized finance, according to Bai’s observations.
This transition, while indicative of the maturation of the market, has left Bitcoin and many altcoins vulnerable.
Despite the immediate challenges, experts agree that Bitcoin’s resistance, which still remains above critical psychological levels, combined with continued institutional interest and bullish market sentiment in the medium term, suggest that this collapse could be a temporary setback in a longer bull cycle.
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