Bitcoin crashes 5% to hit $92,600 from record-high amid US Fed hawkish stance

Bitcoin extended its slide from this week’s record high to almost 15 per cent as hawkish signals from the US Federal Reserve prompted traders to sell an asset that has more than doubled this year. The original cryptocurrency dropped as much as five per cent to $92,600 on Friday morning in New York after setting an all-time high just above $108,000 earlier in the week. 

The crypto price slide weighed heavier on smaller tokens ranging from Ether to Dogecoin and came as equities in Asia and Europe also traded lower. A group of US exchange-traded funds (ETFs) investing directly in Bitcoin on Thursday snapped a 15-day streak of continuous inflows to post a record outflow of $680 million, according to data compiled by Bloomberg.

Also Read: Bitcoin soars to $107,000: Will the upward trend sustain? Experts weigh in

Bitcoin Price Today

The heightened volatility comes after crypto assets staged a rally following Donald Trump’s victory in the US presidential election on November 5. Experts say positioning had become overly bullish, leaving digital assets vulnerable to a change in tone from the US Fed, which is sharpening its focus on bringing inflation back down to target.

Uncertainty in crypto markets looks poised to continue over the holidays as Trump prepares to take office, levelling threats of tariffs against US allies and adversaries. With the US Fed likely to slow the pace of easing, the focus is turning to how quickly traditional financial firms adopt the asset class.

Also Read: Bitcoin crosses all-time high of $107,000 — what do experts say are the reasons?

According to Nigel Green, founder and CEO of deVere Group, bitcoin will likely surge to $150,000 by mid-2025 after correctly forecasting it would reach the previous two all-time highs. The prediction comes as the crypto was back above $100,000 after hitting the milestone for the first time earlier this month.

He says: “Bitcoin is up an astonishing 134 per cent year-to-date, and we believe the stage is set for even greater highs in the months ahead. “I’ve previously predicted it could surge to $120,000 following Donald Trump's inauguration. I believe growing investor FOMO (fear of missing out) and increasing institutional investment can be expected to push the price to $150,000 by mid-2025."

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“This dual momentum fuels the crypto market’s resurgence and establishes Bitcoin as a ‘must-have’ asset in portfolios.” Investor FOMO is another critical driver. The $100,000 milestone is a psychological magnet, drawing in investors who fear being left behind,” said the market expert.

“As Bitcoin achieves new highs, it creates a snowball effect,” Nigel Green explains. “Investors rush in to capture gains, increasing the price and attracting even more participants," explained Green. The institutional investment, in particular, is a game-changer. 

Over the past year, major financial institutions have expanded their exposure to Bitcoin through direct holdings, ETFs, and partnerships with crypto-focused firms. This institutional buy-in adds liquidity to the market and provides credibility that reassures retail investors. It creates a self-reinforcing cycle of demand that propels Bitcoin’s price upward.

Stubborn inflation and rising geopolitical uncertainty reinforce Bitcoin’s case as a safe-haven asset. With inflation remaining high and traditional investments struggling to keep pace, Bitcoin offers a potential store of value. Furthermore, the increasing instability in global politics drives more investors toward alternatives to conventional assets, giving Bitcoin added appeal.

However, Green cautions that the road to $150,000 will not be smooth. “We should expect short-lived sell-offs as investors take profits,” he noted. “These corrections, while unsettling in the short term, are part of a healthy market cycle and pave the way for stronger, sustained growth.”

Green’s revised forecast of $150,000 by mid-2025 underscores his confidence in Bitcoin’s trajectory. “Trump back in the White House, a new pro-crypto SEC chair, growing institutional demand, retail investors’ FOMO, stubborn US inflation, and increasing geopolitical uncertainty creates the perfect storm for Bitcoin to hit $150,000 by mid-2025 potentially,” concludes the deVere CEO.