Cryptocurrency markets are experiencing extreme turbulence once again
The past 24 hours saw wild price swings across major cryptocurrencies, with Bitcoin leading the charge. Prices surged briefly to $102,500 following pro-crypto remarks from former U.S. President Donald Trump, only to crash $3,000 minutes later amid profit-taking. Smaller altcoins followed suit in this rollercoaster session.
Key Market Developments
1. Trump's Crypto Comments Fuel Volatility
- The price surge followed Trump's statement about doing "something great for cryptocurrency"
Market analysts attribute recent bullish momentum to Trump's supportive stance, including:
- Plans to establish a "national strategic Bitcoin reserve"
- Nominations of pro-crypto officials to key positions
- Creation of a White House AI and crypto leadership role
2. Staggering Liquidation Data
- 110,000+ accounts liquidated in 24 hours
$300 million+ in total liquidations
- $200 million long positions
- $100 million short positions
Divergent Market Views
Bullish Predictions
- Nigel Green (deVere Group CEO) forecasts $150,000 Bitcoin by mid-2025
Texas proposes groundbreaking "Strategic Bitcoin Reserve Bill" to:
- Create state-level Bitcoin holdings
- Accept crypto payments for state fees/taxes
👉 Why institutional investors are flocking to crypto
Institutional Caution
Bank executives expressed reservations at Reuters NEXT conference:
| Institution | Stance |
|---|---|
| Goldman Sachs | "Regulatory framework must evolve" |
| BNY Mellon | Proceeding with crypto custody services cautiously |
BlackRock's Groundbreaking Recommendation
The world's largest asset manager suggested:
- 2% portfolio allocation to Bitcoin for interested investors
Key considerations:
- Low correlation with traditional assets
- Diversification potential
- Extreme volatility risks
Warning: Bitcoin remains "highly unstable" and adoption isn't guaranteed
Global Regulatory Developments
- Turkey blocking access to dozens of crypto exchanges
- U.S. banking regulators expected to soften crypto stance under Trump administration
Bitcoin Price Action Analysis
Recent price trends show extreme volatility:
- Dec 10: Dropped from $100k to <$95k
- Dec 11: Reclaimed $100k
Dec 12-13:
- Peaked at $102.5k
- Crashed to $99.2k (-3.3k)
👉 How to navigate volatile crypto markets
FAQ: Understanding the Crypto Crash
Q: Why did Bitcoin prices drop suddenly?
A: Profit-taking after Trump's comments triggered a cascade of liquidations.
Q: Are institutions still investing in crypto?
A: Yes - Bitcoin ETFs have surpassed $100B in assets, with BlackRock's iShares BTC Trust holding $51.1B.
Q: What's the long-term outlook for Bitcoin?
A: Analysts remain divided - some predict $150k by 2025 while others warn of ongoing volatility.
Q: How are governments responding?
A: Mixed approaches - some like Texas embrace crypto, while Turkey restricts exchange access.
Q: Should I invest in crypto now?
A: BlackRock suggests no more than 2% portfolio allocation for risk-tolerant investors.
Q: What's causing the increased volatility?
A: Combination of political comments, institutional flows, and leveraged trading positions.
Note: All information presented reflects market conditions as of reporting date. Cryptocurrencies involve substantial risk and may not be suitable for all investors.