Bitcoin The price experienced a sharp decline after the recent interest rate cut by the US Federal Reserve, but market experts such as Bitwise CIO Matt Hogan Remain optimistic about the asset's long-term trajectory.
On December 18, the Federal Reserve announced a Rate reduction of 25 unitscut its outlook for 2024 to two cuts from four previously.
Also, and perhaps more importantly for bitcoin, Chairman Jerome Powell added that the Fed cannot hold bitcoin under current regulations while answering questions about the president-elect. Donald Trump's strategic Saving plans.
This led to significant market reactions, with the price of Bitcoin falling as low as $98,839 to $101,586 earlier today. Similarly, other premium digital assets such as EthereumXRP and Solana It also registered about 5%, 5.5% and 3% losses respectively.
data According to CoinGlass, this red market performance led to the liquidation of around $800 million, affecting more than 270,000 traders. Traders speculating on a bullish move suffered the most, losing $662 million in the past 24 hours.
Beyond cryptocurrencies, traditional markets such as the S&P 500 and Russell 2000 index fell 3% and 4.4%, respectively.
The long-term trajectory of Bitcoin
Despite the setback, Hogan reassured investors that Bitcoin's fundamentals remain strong.
CIO Bitwise explained Bitcoin's recent resilience is due to crypto-specific internal factors, such as increasing institutional adoption, pro-crypto changes in US policy, and government and Buy corporate bitcoins
He also highlighted significant blockchain developments and rising ETF flows as additional drivers of market strength.
Additionally, Bitcoin's technical indicators remain favorable, with its 10-day EMA ($102,000) still above the 20-day EMA ($99,000). Hogan sees this as a bullish signal, reinforcing his belief that the current dip is a short-term fluctuation rather than the end of the current bull market.
Despite external pressures, Hogan predicted that Bitcoin will continue its multi-year bull run, driven by strong adoption trends and technological advances in the crypto space.
He concluded:
Crypto is in a multi-year bull market. “The projected 50 bps interest rate cut will not change that.”
