Bitcoin, Dogecoin, and Ethereum Plummet After Fed Vice Chair's Rate Cut Remarks: Top Trader Predicts BTC at $500,000 and ETH at $20,000
Wednesday, Feb 5, 2025 9:48 pm ET
2min read The cryptocurrency market experienced a significant downturn on Thursday, with Bitcoin (BTC), Dogecoin (DOGE), and Ethereum (ETH) all dropping in price following comments from Federal Reserve Vice Chair Lael Brainard. Brainard poured cold water on expectations of a rate cut, stating that the central bank would be "cautious" in considering further adjustments to its policy rate. This news sent shockwaves through the crypto market, with investors reacting to the potential impact on interest rates and the broader economy.
Bitcoin, the largest cryptocurrency by market capitalization, fell by 5.5% to $96,000, while Ethereum dropped by 7.1% to $3,000. Dogecoin, a popular meme coin, also experienced a significant decline, losing 10% of its value. The overall crypto market capitalization contracted by 7.1% to $3.6 trillion.
Despite the recent downturn, some prominent traders remain bullish on the long-term prospects of Bitcoin and Ethereum. One top trader, known for his accurate predictions, has expressed his belief that Bitcoin could reach $500,000 and Ethereum could hit $20,000 in the future. This optimistic outlook is based on the growing adoption of cryptocurrencies, technological advancements, and the potential for institutional investment.
However, it is essential to consider the risks and uncertainties associated with the cryptocurrency market. The recent downturn serves as a reminder that the market is volatile and subject to sudden changes in sentiment and regulatory developments. Investors should remain cautious and conduct thorough research before making any investment decisions.
In conclusion, the cryptocurrency market experienced a significant downturn following comments from Federal Reserve Vice Chair Lael Brainard. Despite the recent decline, some prominent traders remain bullish on the long-term prospects of Bitcoin and Ethereum. However, investors should remain cautious and consider the risks and uncertainties associated with the crypto market.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
