Bitcoin (BTC-USD) has fallen nearly 30% from its early October record high of nearly $126,000 to between $89,900 and $91,400. This is a six-month low, continuing a decline that has wiped out over $1 trillion in the digital asset's value in six weeks. The correction coincides with a decline in liquidity, declining investor confidence, and a loss of interest in high-risk assets, from AI-linked tech stocks to cryptocurrency derivatives.

The immediate cause of the crash is a shift in expectations for the Federal Reserve's monetary policy. The December FOMC decision has now become the dominant short-term catalyst for cryptocurrency prices. Faced with gaps in economic data caused by the 43-day US government shutdown, policymakers are becoming increasingly hawkish. Federal Reserve Chairman Jerome Powell stated that "cutting interest rates is not a foregone conclusion," while Boston Federal Reserve President Susan Collins argued that the current interest rate "could remain tight for some time." The result is renewed liquidity stress and a sharp increase in risk aversion that has hit both stocks and the cryptocurrency market.$BTC #TopGainersInADownMarket #BitcoinPriceWatch #GovShutdownOfficiallyEnded #BuyTheDipOrWaitNow? #ContentMining&EarnRichCommission #AreYouBullishOrBearishToday?