Bitcoin's $1500 Plunge in 48 Hours: Inflation Fears and SoftBank Loss Shake Crypto Market

Bitcoin's price has experienced a significant drop of $1500 in just 48 hours, raising questions about the feasibility of reaching the $100,000 mark. The cryptocurrency market has been volatile, with Bitcoin and other major cryptocurrencies facing similar challenges.

In the past two days, Bitcoin has struggled to regain the $98,000 mark, and in the last 24 hours, it has fallen by 1.8%. This decline comes amidst an exceptionally high inflation data reported on February 12, which has caused panic among investors. As of now, Bitcoin's price has fallen below $97,000, marking the lowest point in the last 10 days. This correction in price comes as the US has experienced three consecutive CPI increases.

In January, Bitcoin dropped to a monthly low of $94,200, leading some investors to believe that the price could be heading towards that support level. While Bitcoin can still reach the $100,000 mark, it appears more challenging now. The tariff policy of former President Trump and worldwide economic momentum are expected to play significant roles in Bitcoin's future.

The traditional stock market also retracted following the shocking inflation report, raising questions about whether traditional market sentiments have impacted Bitcoin investors' confidence. Although the trading market has been searching for genuine links between the equity market and the digital currency market, no formative link has been established based on price parity.

Adding to the concerns, the Asian conglomerate SoftBank, a major investor in digital assets and crypto technology, reported a significant loss of $2.4 billion during the last quarter of FY 2024. Bitcoin traders are now viewing this as a potential crisis that could affect the crypto market. Additionally, the involvement of Chinese entities in SoftBank and its projects has raised concerns among US-based crypto traders.

Bitcoin miners have also reported plummeting profits, with the hash rate price index indicating a decline in transaction fees. The high energy costs have made it difficult for some miners to continue operating, leading to a decrease in the overall hash rate.

To overcome the impact of broader market factors, the stablecoin ecosystem needs to become more decentralized and attract new institutional traders. Additionally, Bitcoin must establish itself as an alternative payment ecosystem in the retail environment to maintain its dominance. Without these changes