Another collapse of the crypto market is associated with the uncertainty of US regulatory policy

Bitcoin BTC $88,432.53 Mezo Wrapped BTC 1.93% Market capitalization $43.64 million VOL. 24 hours $2.14 billion plummeted below $ 103,000 on Wednesday morning amid investor concerns about the upcoming decision of the US Federal Reserve. Amid profit-taking by traders and uncertainty over monetary policy, the cryptocurrency market has suffered a significant drop, and most digital assets have fallen even further.

According to CoinMarketCap, the flagship of the crypto market was trading at $ 103,222, down 3% over the past day. Ethereum ETH $2,943.87 Bridged Ether (StarkGate) 5.75% Market capitalization $78.41 million VOL. 24 hours $2.06 billion fell by 4.7% to $ 3,434, XRP XRP $2.24 XRP 10.16% Market capitalization $135.22 billion VOL. 24 hours $0.45 billion fell by 5.3% to $ 2.40, and Solana SOL $138.22 Binance-Peg SOL 6.16% Market capitalization $0.15 billion VOL. 24 hours $0.63 billion lost almost 9%, dropping to $ 154.76. Before that, the main cryptocurrency briefly recovered from a monthly low of about $ 101,500 to more than $ 106,600, but then a new wave of sales began.

Market analysts attribute the drop to a combination of technical and behavioral factors. According to Vincent Liu, chief investment officer at Kronos Research, many traders began to close long positions after bitcoin failed to overcome the $ 107,000 resistance level. This caused a wave of liquidations due to triggered stop orders on exchanges, which increased pressure on the market. Liu noted that the sales triggered automatically accelerated the decline more than fundamental factors could have.

The short-term growth that followed the US Senate’s decision to reopen the government and end the long-running shutdown quickly faded. «The macro growth was short-lived,» Liu commented, adding that the $ 100,000 level is the next critical support. Breaking through this level could lead to a new wave of sales and increase market volatility.

The main factor of instability remains the expectation of the December meeting of the Federal Reserve. Initially, the markets expected another interest rate cut, which usually supports crypto assets. However, Fed Chairman Jerome Powell recently cooled these expectations, saying that the regulator would proceed cautiously. Within the Fed, there are still disagreements about the feasibility of easing monetary policy. According to the CME Group, the probability of a rate cut on December 9−10 is estimated at 66.9%, reflecting increased uncertainty among investors.