$100 Billion Bitcoin And Crypto ETF Price Crash Suddenly Accelerates After Serious Fed Warning—Hitting Ethereum, XRP And Solana

bitcoin
btc
and cryptocurrencies, including top ten coins: ethereum, XRP
XRP
and solana—have fallen sharply despite a huge $10 trillion bitcoin price bet.

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The price of bitcoin has fallen almost 10% in the last 24 hours, weighing on the price of ethereum, XRP, solana and other top ten cryptocurrencies. wiping around $100 billion off the combined crypto market following the rise of bitcoin spot exchange-traded funds (ETFs).

Before the bitcoin price crash, legendary bitcoin and cryptocurrency trader Arthur Hayes had warned that the Federal Reserve could be about to trigger a 30% drop in the price of bitcoin, predicting "a brutal crash" in the coming months.

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“I am preparing for a cruel defeat of all crypto tourists in March of this year,” wrote Hayes, chief investment officer of family office Maelstrom and former CEO of BitMex, the pioneering bitcoin derivatives exchange. a blog post.

“I bought cryptocurrency in the second half of 2023 and I think between now and April it is a no-trade zone in terms of additional risk.”

The price of bitcoin could fall by 20% to 30%, according to Hayes, due to "a pull of dollar liquidity." However, he said he expected the price of bitcoin to recover quickly due to the Federal Reserve restarting its money printer.

“Bitcoin will initially fall sharply with broader financial markets, but will recover before the Federal Reserve meeting,” Hayes said. "This is because bitcoin is the only strong neutral reserve currency that is not a liability of the banking system and is traded globally."

The bitcoin price crash in 2022, which wiped out $2 trillion from the bitcoin, ethereum, XRP, solana and cryptocurrency markets, was widely attributed to the Federal Reserve raising interest rates and reducing its balance sheet in response to a dizzying inflation that risked getting out of control. .

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However, the price of bitcoin rebounded sharply in 2023 and accelerated as BlackRock
BLACK
The Wall Street-led bid to bring a spot bitcoin ETF to market reached its culmination this week, with the US Securities and Exchange Commission (SEC) churning out a flurry of funds.

“The approval of bitcoin spot ETFs remains a ‘selling the news’ event, but we believe it will be very superficial in the short term,” CK Zheng, chief investment officer at crypto hedge fund ZX Squared Capital. "If there is any major pullback in the price of bitcoin over the near term, we believe it will be a great opportunity to add significantly more long positions."