Affected by the US Federal Reserve's expectation of fewer rate hikes in 2025 on December 19, Bitcoin suffered a sharp decline, falling from a high of $104,829 in the early hours of the 19th to a low of $92,268 on the 20th, a drop of up to 12%.
However, after the release of the US November PCE report last night, Bitcoin rebounded, and at the time of writing, it was temporarily quoted at $96,688, with the 24-hour decline narrowing to 3.9%.
Deleted a Prediction Four Years Ago
It is worth mentioning that although the overall sentiment in the cryptocurrency market has been gloomy in the past two days, Twitter user @WhaleFUD has carefully discovered that , the founder of Binance exchange, seemed to have predicted the decline this week in a tweet he posted on December 17, 2020. The user also tagged , hoping he would delete the tweet:
Waiting for a new headline: Bitcoin plunges from $101,000 to $85,000.
himself did not explain why he made such a prediction in the 2020 tweet, nor did he delete the original tweet. However, he has posted a similar tweet in the last 24 hours, hinting that Bitcoin will continue to set new highs:
Waiting for a new headline: Bitcoin sets a new all-time high, again, and again, and again...
's response also provided some comfort to investors who are currently facing market turmoil, but whether his latest prediction will come true and when Bitcoin will set a new all-time high again remains to be seen.
Analyst: Pause in Rate Hikes Does Not Change Bitcoin's Upward Trend
Regarding the market decline caused by the Federal Reserve's downward revision of its rate hike expectations for next year, Bitwise's Chief Information Officer, Matt Hougan, stated on Twitter that the current situation will not hinder the upward trend of Bitcoin. Hougan pointed out that the Federal Reserve's signal has indeed had an adverse effect on risk assets, and the declines in US stocks and Bitcoin are inevitable, but he believes that the current correction does not mean the end of cryptocurrencies, as the correlation between the Federal Reserve's attitude and Bitcoin has become less tight, and Bitcoin now has inherent upward momentum:
I think this is just a small hiccup in Bitcoin's upward journey.
The Federal Reserve's influence on cryptocurrencies has diminished, and cryptocurrencies now have inherent momentum, with the overall trend still driving Bitcoin higher, including:
. Washington's policy has shifted to support cryptocurrencies
. Institutional adoption and ETF inflows are constantly increasing
. Governments and companies will buy Bitcoin
. Blockchain has major technological breakthroughs
