The director of European research at Bitwise predicts the likelihood of further turmoil in the digital asset market in the coming weeks. According to the expert, the US Federal Reserve finds itself in a difficult position, trying to balance between economically negative scenarios, which has already affected the price of Bitcoin.

Andre Dragosch drew attention to the negative consequences for the digital asset market that occurred after the statement of Federal Reserve Chairman Jerome Powell, who ruled out the possibility of adding bitcoins to the balance sheet of the US Central Bank.

The announcement led to a strengthening in Treasury yields, leading to an outflow of funds from riskier assets such as cryptocurrencies.

Bitcoin, the main driver of cryptocurrency market cap growth, fell 8.8% to nearly $95,000, its biggest drop since August, according to TradingView and CoinDesk Indices.

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Dragos believes that in such a situation the crypto market will face two equally probable events.

“On the one hand, in the coming weeks we will see an even deeper correction in the crypto market. On the other hand, this may become an opportunity for crypto investors to buy assets when they fall,” the expert reasoned.

Earlier, Santiment experts said that the sentiment index of traders of the first cryptocurrency by capitalization dropped to its minimum value for the year, which may indicate a possible quick recovery of the Bitcoin price above $100,000.