Market News

Bitcoin has suddenly plunged under $91,000 per bitcoin, setting alarm bells ringing that the Federal Reserve could be about to trigger a bitcoin price crash.

The bitcoin price has dropped sharply from its post-Donald Trump election victory peak of almost $110,000 per bitcoin—despite Trump confirming he's planning a bitcoin price game-changer.

Now, as the Fed has been warned of a looming crisis, bitcoin and crypto traders are nervously watching for whether the combined crypto market will drop below the key $3.2 trillion level.

"The start of the new year has not been easy for the crypto market," Alex Kuptsikevich, the FxPro chief market analyst, said in an emailed note.

"The next target for the bears looks to be the $88,000 area. And in a negative scenario, bitcoin will face a quick pullback to $74,000."

The bitcoin and crypto market has struggled to hold onto it post-Trump election gains, with momentum being sapped by a string of positive economic updates that mean the Federal Reserve is less likely to cut interest rates this year.

"Losing over 2% in 24 hours to $3.22 trillion, the market was back at the bottom of the consolidation range since the end of November," Kuptsikevich wrote.

"The promising start to the year failed to materialize. It is with some trepidation that we now watch the eighth or so attempt to break below $3.20 trillion. Adding to the unease is the fact that last week's upside momentum failed to develop, only attracting sellers."

The combined crypto market soared to a record high of almost $4 trillion in the aftermath of Trump's presidential election victory as traders and investors cheered the incoming administration's pro-crypto agenda.