由 zq4034698 
Bitcoin’s price has dropped below $90,000. It has reached a three – month low, trading at around $88,500. This decline is part of a broader trend where US stocks and other risky assets are also falling.
The cryptocurrency Fear and Greed Index has entered the “extreme fear” zone. This shows that people are very worried about the overall collapse of the cryptocurrency market. The recent sell – off in meme coins and a general risk – averse sentiment in the market are the main reasons for Bitcoin’s price drop.
Geoff Kendrick, the head of cryptocurrency research at Standard Chartered Bank, said that although Bitcoin is trading better than other tokens, it is still affected by the meme – coin – driven sell – off. The overall market’s risk – off mood is also having an impact. He also pointed out that the NASDAQ index in the US stock market has fallen from near – record highs last week.
Earlier this month, the wild price swings of the Libra token, which were caused by two remarks from the Argentine president Milei, made the market start to doubt meme coins. Then, the hacking of nearly $1.5 billion worth of Ether from Bybit, the world’s second – largest cryptocurrency exchange, added to the market’s panic.
The macro – economic environment is also challenging for cryptocurrency trading. Jack McIntyre, a portfolio manager for fixed – income strategies at Brandywine Global, said that stagflation has become a major concern in the market. The policies of the White House may hurt consumer demand. At the same time, high inflation data restricts the Federal Reserve’s ability to act.
Kendrick from Standard Chartered Bank said that although the decline in US Treasury yields is a long – term positive for Bitcoin, he doesn’t suggest investors buy the dip. He predicts that Bitcoin’s price will soon drop to around $80,000. He also said that before a real bottom is formed, the daily outflows from Bitcoin spot ETFs will reach $1 billion, setting a new record for daily outflows of such funds.
James Toledano, the chief operating officer of Bitcoin and the cryptocurrency platform Unity Wallet, said that investors are in a wait – and – see mode. They are trying to balance the optimistic sentiment from institutional money inflows with macro – economic uncertainties, potential global trade wars, and the Federal Reserve’s interest – rate decisions. He thinks that unless there are major macro – economic, geopolitical shocks, or regulatory changes, the cryptocurrency market is unlikely to see a significant price crash in the short term. In the US, many people are still betting more on the cryptocurrency market because of favorable regulatory changes.
However, macro – analysts are worried about macro – economic changes. Dan Coatsworth, an investment analyst at AJ Bell, said that the market now thinks there is a 97.5% chance that the Federal Reserve will not adjust interest rates in March. A month ago, this probability was only 75.5%. It seems that the Federal Reserve will delay rate cuts and may not cut rates this year. Jon Brager, a portfolio manager at Palmer Square Capital Management, warned that the Federal Reserve may even raise interest rates this year.