Bitcoin continues its freefall, the cryptocurrency market is in the red.

(Dan Tri Newspaper) - Stock market volatility and Fed actions have pushed Bitcoin close to $85,000. The cryptocurrency market is entering a tense and directionless state.

After a week of trading sideways around the $90,000/bitcoin mark, Bitcoin began to experience significant volatility last night and moved out of this price range. Around 1:30 AM (Vietnam time), the world's largest cryptocurrency briefly dropped to near $85,300.

After that, Bitcoin recovered slightly before falling back down to near $85,000. Compared to its peak of $126,198 set in early October, the current price has fallen by more than 32% and is also the lowest level in the past half-month.

The decline wasn't limited to Bitcoin; it spread to many other cryptocurrencies. Ether lost more than 5% compared to the previous day, falling below $2,950. Tokens like XRP, BNB, SOL, DOGE, ADA, etc., also saw simultaneous corrections of 3-7%.

The decline in the cryptocurrency market coincided with a correction in US stocks. The Nasdaq closed down 0.6%, while the S&P 500 lost 0.15%.

Stocks related to artificial intelligence, such as Broadcom and Oracle, continued to face downward pressure after releasing less-than-positive earnings results. According to Wintermute, investor sentiment is gradually becoming "tired" of risky assets.

Bitcoin's retreat to near the $85,000 mark has led many to question whether the downward trend will continue. According to Jasper De Maere, a strategist at the financial firm Wintermute, unless there is significant margin calls or a persistent decline in liquidity, these corrections are likely to be followed by a recovery soon.

Bitcoin price continues to fall sharply (Image: Binance).

One of the factors putting significant pressure on the market is the recent meeting of the US Federal Reserve (Fed). Although the Fed cut interest rates by 0.25% as most investors had expected, the prospect of further monetary easing is gradually narrowing.

Updated forecasts suggest the Fed may only implement one interest rate cut throughout 2026, significantly lower than previous market expectations. Investors are still betting on around three rate cuts next year.

Experts believe that the divergence between inflation trends and monetary policy expectations is creating an unstable environment for risky assets. Furthermore, the Bank of Japan is expected to raise interest rates this week and plans to release over $500 billion worth of ETF holdings. These moves are increasing concerns about global liquidity as well as interest rate arbitrage opportunities related to the Japanese yen.

Source: https://dantri.com.vn/kinh-doanh/bitcoin-tiep-tuc-roi-tu-do-thi-truong-tien-so-do-lua-20251216155040217.htm