Bitcoin Price Sees First Major Weekly Drop Since Trump’s Win, Crypto Fear & Greed Index Hits Lowest Level
Highlights:
- Bitcoin fell 10% to $94,645, marking its first significant drop since Trump’s election rally.
- Crypto Fear & Greed Index dropped to 70, reducing market greed and increasing risk awareness.
- VanEck and Bitwise predict that, driven by institutional adoption, Bitcoin could hit $180,000- $200,000 by next year.
Bitcoin saw its first significant weekly drop since Trump’s election rally. It fell 10% to $94,645 by Dec. 22. This was a $10,500 drop from $105,185. The decline followed the U.S. Federal Reserve’s decision to reduce projected interest rate cuts for next year. The number of cuts was trimmed from five to two.
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The federal funds rate could now reach 3.9% in 2025, up from the expected 3.4%. This creates a less favorable environment for risk-on assets like Bitcoin. Until last week, BTC’s price had risen in six of the last seven weekly closes since Trump’s victory. Bitcoin is currently priced at $95,488, down over 8% in the past week.
Despite the pullback, Bitwise and VanEck expect Bitcoin to reach $180,000 to $200,000 by next year. They believe this growth could be driven by a US BTC reserve. Further institutional and corporate adoption could also play a key role.
Crypto Fear & Greed Index Reaches Lowest Point Since Trump’s Victory
On Monday, the Crypto Fear and Greed Index dropped to its lowest level of 70 since Donald Trump’s presidential victory. This matches the level just before Trump’s decisive win. The index ranges from 0, showing extreme fear, to 100, showing extreme greed. It helps traders judge the market and make their buying and selling decisions.
After Trump’s election, the index soared to 94, signaling peak market greed and possible overvaluation. This high occurred even before Bitcoin hit an all-time high on December 17. Now, the index’s drop to 70 still shows market greed, but with less intensity. Investors remain confident, but there’s a slight increase in risk awareness. At 90, greed drives unchecked pursuit of gains. At 70, investors begin noticing warnings about potential corrections or bubbles.
Bitcoin Fear and Greed Index is 70 – Greed
Current price: $94,586
Follow on Telegram: https://t.co/XKOdVF2cCZ pic.twitter.com/VGNZJMlDui— Bitcoin Fear and Greed Index (@BitcoinFear) December 23, 2024
Bitcoin Price Corrections are Normal
Historically, week eight in Bitcoin’s price cycle tends to show a corrective trend, as reported by crypto analyst Rekt Capital. In 2017, week nine also experienced a correction, though not as severe as week eight. After clearing weeks 7 and 8, the price retracement usually nears its bottom, they noted.
Bitcoin has confirmed a Bearish Engulfing candlestick formation$BTC #Crypto #Bitcoin https://t.co/KnIptVe958 pic.twitter.com/XwUWCkjTvM
— Rekt Capital (@rektcapital) December 23, 2024
Sean McNulty, director at Arbelos Markets, suggested that Bitcoin should hold the $90,000 level until year-end. A break below that could lead to more liquidations. David Lawant from FalconX noted that a low-liquidity environment might cause more volatility as the year ends. He also mentioned that December 27 is expected to be the largest crypto options expiry event in history. Nearly $18 billion in BTC and ETH contracts will expire on that day.
However, Trader Josh Rager mentioned in a December 23 X post that -30% pullbacks are typical during bull markets. He said, “This current price action hasn’t been fantastic but it also hasnt been awful. Imagine pulling back to $75k right now for a -30% pullback.”
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Syed Ali Haider
Ali Haider is a contributing crypto writer at Crypto2Community. He is a crypto and blockchain journalist with over six years of experience and has long advocated for digital freedom and cybersecurity. Haider has been featured in several high-profile crypto and finance outlets, including Coincult, AltcoinBeacon, BTCRead, and more.
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