Bitcoin plunges 5% from all-time high, hitting $92,600 amid hawkish Fed stance

Bitcoin’s losses extended to nearly 15% from this week’s all-time high as hawkish signals from the Federal Reserve prompted traders to sell assets that have more than doubled this year. The original cryptocurrency fell 5% to $92,600 in New York on Friday morning after hitting an all-time high of just over $108,000 earlier this week.

Slumping cryptocurrency prices put more pressure on smaller coins from ether to dogecoin, while stock markets in Asia and Europe also fell. On Thursday, a group of U.S. exchange-traded funds (ETFs) that invest directly in Bitcoin ended a 15-day streak of consistent inflows, with outflows reaching a record $680 million, according to data compiled by Bloomberg.

Also read: Bitcoin surges to $107,000: Will the uptrend continue? Experts weigh the pros and cons

Bitcoin price today

Crypto assets rallied and volatility increased after Donald Trump won the U.S. presidential election on November 5. , the Federal Reserve is intensifying its focus on pushing inflation back to target levels.

Uncertainty in the cryptocurrency market looks set to persist into the holidays as Trump prepares to take office and threaten tariffs against U.S. allies and adversaries alike. With the Federal Reserve likely to slow its pace of easing, focus turns to how quickly traditional financial firms can adopt the asset class.

Also read: Bitcoin breaks all-time high of $107,000 – what experts think is the reason?

Nigel Green, founder and CEO of deVere Group, said that Bitcoin could soar to $150,000 by mid-2025, after correctly predicting that Bitcoin would reach its first two all-time highs. The prediction comes as the cryptocurrency is back above $100,000 after reaching the $100,000 milestone for the first time earlier this month.

He said: “Bitcoin has gained an astounding 134% so far this year, and we believe it will hit higher highs in the coming months. “I previously predicted that it could surge to 12 after Donald Trump takes office. $150,000. I believe growing investor FOMO (fear of missing out) and increasing institutional investment are expected to push the price to $150,000 by mid-2025.

Also read: Donald Trump’s Strategic Reserve Plan Sends Bitcoin Surge to All-Time High Over $106,000

“This dual dynamic has fueled the cryptocurrency market’s recovery and established Bitcoin as a ‘must-have’ asset in investment portfolios.” Investor FOMO is another key driver. The $100,000 milestone acts as a psychological magnet for investors who are worried about being left behind,” the market expert said.

“As Bitcoin reaches new highs, it has a snowball effect,” explains Nigel Green. “Investors are rushing in to capture yields, increase prices and attract more participants,” Green explains. Institutional investment, in particular, can be a game changer.

Over the past year, major financial institutions have expanded their exposure to Bitcoin through direct holdings, ETFs, and partnerships with cryptocurrency-focused companies. This institutional buying adds liquidity to the market and provides credibility that reassures retail investors. It creates a self-reinforcing demand cycle that drives Bitcoin prices higher.

Stubborn inflation and rising geopolitical uncertainty strengthen Bitcoin’s case as a safe-haven asset. As inflation remains high and traditional investments struggle to keep pace, Bitcoin offers a potential store of value. Additionally, growing global political instability has prompted more investors to turn to alternatives to traditional assets, adding to Bitcoin’s appeal.

However, Green warns that the road to $150,000 won’t be easy. “We should expect a brief sell-off as investors take profits,” he noted. “These adjustments, while troubling in the short term, are part of a healthy market cycle and set the stage for stronger, sustained growth.” paved the way.”

Green adjusted his mid-2025 forecast to $150,000, underscoring his confidence in Bitcoin’s trajectory. “Trump’s return to the White House, a new pro-cryptocurrency SEC chairman, growing institutional demand, FOMO among retail investors, stubborn U.S. inflation, and increasing geopolitical uncertainty may all contribute to Bitcoin’s growth in 2025. Reaching $150,000 in the medium term creates the perfect storm,” concluded CEO Dowell.